Oil on track for second week of gains on Gaza contagion fears

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Oil on track for second week of gains on Gaza contagion fears
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Masstown farmer launches pumpkins over a kilometre for charity | SaltWireSINGAPORE -Oil prices extended gains on Friday and were on track for a second week of increases on heightened fears that the Israel-Gaza conflict may spread in the Middle East and disrupt supplies from one of the world's top-producing regions.

"The bigger concern remains that the escalation of tension that we're likely to see with regard to the IDF entering Gaza this weekend means the risk to crude oil are towards higher prices," IG analyst Tony Sycamore said. The U.S. intercepted missiles fired from Yemen toward Israel, Pentagon said, adding to the anxiety about the broadening of the conflict.

Oil price are also supported by forecasts of a widening deficit in the fourth quarter after top producers Saudi Arabia and Russia extended supply cuts to the end of the year and amid low inventories especially in the United States.

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