Crude oil futures resumed their upward movement amid renewed concerns over the escalating tensions in the Middle East ahead of the U.S. elections.
Heightened tensions between Israel and Hezbollah have raised fears about potential escalations in the conflict, pushing prices higher.
Geopolitical uncertainty could continue to drive crude prices up, as the conflict in the region returns to the forefront following a week of significant declines driven by worries about weakening Chinese demand.
In this regard, demand could remain a source of concern and traders could continue to monitor indicators from China and the US. American crude inventories have seen strong increases that went beyond expectations and could fuel weaker demand forecasts.
While higher inventories may weigh on prices in the short term, the underlying demand for distillates suggests that the prices could remain supported to a certain extent, diminishing bearish pressure. Meanwhile, stronger travel demand in Asia could be a positive sign for the market although weaker economic growth in China remains a source of uncertainty.
