By Robert Daniel, MarketWatch
TEL AVIV (MarketWatch) — Oil prices rose early on Monday, aiming for a fifth straight day of gains.
Oil for September delivery CLU2 +0.08% rose 2 cents a barrel to $96.03 a barrel in electronic trading on the New York Mercantile Exchange.
The recent spike in oil prices isn’t “getting the attention it deserves,” said Michael Derks, chief strategist at FxPro.
Two months ago, “Brent crude fell below $90 a barrel but is now near $116, an increase of nearly 30%,” the analyst wrote.
“Israeli saber-rattling” regarding Iran “and a significant tightening in U.S. oil inventories” are key factors, he said.
“For developing countries that rely on imported fuel, such as India and China, this recent price spike renders policy-making even more treacherous, at a time when both foreign and domestic demand have clearly weakened,” he said.
On Friday crude-oil futures rose on optimism about the U.S. economy and as investors expressed skepticism about a Reuters report that the U.S. government could be preparing to release some oil reserves.
Oil was up 3.4% last week, marking its third consecutive weekly gain.
Data released Friday by the University of Michigan and Thomson Reuters said consumer sentiment rose in August but remained relatively low. See: Consumer sentiment rose in August.
The Conference Board reported its index of leading economic indicators grew 0.4% in July, pointing to continued slow growth in the U.S. economy. See: Leading indicators climbed 0.4% in July.
Elsewhere in energy, natural gas for September delivery NGU2 -0.77% slipped 2 cents to $2.70 per million British thermal units.
Heating oil for September HOU2 +0.78% rose 2 cents, or 0.6%, to $3.11 a gallon.
Robert Daniel is MarketWatch's Middle East bureau chief, based in Tel Aviv.
