Oil prices back on the rise

Global benchmark Brent is trading above $85 a barrel, while U.S. crude is trading near $81. Israeli forces continue to advance gradually into the Gaza Strip.

U.S. Secretary of State Antony Blinken will travel to Israel on Friday and conduct further visits in the region.

Beyond Israel's attacks on Gaza, there is evidence that the demand outlook is fluctuating, with both Brent and U.S. crude recording their first monthly declines since May. Manufacturing in China, the world's largest oil importer, began to contract again in October, while BP stated that global gasoline and diesel markets are in oversupply.

Brent ended its four-month streak of gains with a decline of more than 8% in October, as demand concerns overshadowed the Israel-Hamas conflict. Fears of supply or transport disruptions in a region that is the source of about one-third of the world's crude oil have eased as the war has not spread.

Standard Chartered investment strategist Han Zhong Liang said, "The geopolitical risk premium in oil is weakening, which means the oil market's focus will likely shift back to global demand and supply factors."

News Source: 12punto