Oil Futures Post Fourth Straight Weekly Gain

1542 ET – Crude futures settle higher for a fourth consecutive weekly gain as rising geopolitical tensions outweigh broader concerns of global oversupply. Recent gains appear driven more by hedging and risk management than a structural shift in the global balance, Antonio Di Giacomo of XS.com says in a note. “Although the market’s base case assumes that the likelihood of direct U.S. military action against Iran has decreased, a risk premium persists due to the possibility of escalation in the Middle East,” he adds. “As long as there are no actual supply disruptions or a strong rebound in demand, oil will likely continue to trade within established ranges, with bouts of headline-driven volatility but without a sustained long-term directional trend.” WTI settles up 0.4% at $59.44 a barrel for a 0.5% weekly gain. Brent rises 0.6% to $64.13, up 1.2% from a week ago. (anthony.harrup@wsj.com)

Oil Futures Pick Up After Selloff

0934 ET – Oil futures are recovering some of the ground lost the previous session when markets saw reduced risk of U.S. strikes against Iran. Crude is “trying to hold a bullish structure after trading in a $6.00 range the past week,” Dennis Kissler of BOK Financial says in a note. Lack of progress in Russian/Ukraine peace efforts looks supportive of prices, along with additional sanctions to be set against Iran, he says. “While it seems the geopolitical aspects have cooled for now, the U.S. is said to be sending yet another major warship to the Middle East which is signaling to traders that Iran will be under extreme scrutiny.” WTI is up 1.6% at $60.12 a barrel and Brent is up 1.5% at $64.74. (anthony.harrup@wsj.com)