ISTANBUL, July 29 — Oil prices rose today due to concerns about an escalating conflict in the oil-rich Middle East, reported Anadolu.

International benchmark Brent crude traded at US$80.67 (RM374.17) per barrel at 09.51am local time (0651 GMT), an increase of 0.49 per cent from the closing price of US$80.28 per barrel in the previous trading session.

The American benchmark West Texas Intermediate (WTI) traded at US$77.50 per barrel at the same time, a 0.44 per cent rise from the previous session that closed at US$77.16 per barrel.

Both benchmarks started the week with upward movements following an attack in the Israeli-occupied Golan Heights.

Despite ceasefire negotiations, escalating geopolitical tensions in the Middle East, home to a vast majority of global oil reserves, increase supply risk in the markets.

Meanwhile, negotiations regarding the ceasefire in Gaza and the exchange of prisoners between Hamas and Israel are currently stalled after the postponement of the Israeli delegation’s visit to next week, which was initially scheduled for Thursday.

However, gains were weak as the outlook for crude demand in the world’s largest crude oil importer remained bleak.

Prices continue to be depressed by concerns about demand in China as it grapples with a slowing economic recovery.

This week, market players will be watching the US Federal Reserve’s (Fed) meetings in a bid to gauge the oil market trajectory.

Fed will review its policy on July 30-31. While investors expect the bank to keep rates unchanged, they will also look for further evidence that a rate cut will happen at the September meeting.

Experts believe that reducing policy interest rates soon would support economic activity in the country, resulting in higher oil demand. — Bernama