SINGAPORE: Oil prices nudged higher on Friday and are on track for a weekly gain of more than 1 percent, as tensions in the world’s top oil-producing region, the Middle East, and a restart in Gaza ceasefire talks in the coming days kept traders on edge.

Brent crude futures climbed 18 cents, or 0.2 percent, to $74.56 a barrel by 6:42 a.m. Saudi time while US West Texas Intermediate crude was at $70.34 a barrel, up 15 cents, or 0.2 percent.

“We remain of the view that the right price for crude oil currently is around $70 where it is now, as we await fresh price drivers, including the outcome of China’s NPC Standing Committee meeting as well as Israel’s response to Iran’s October 1 missile attack,” IG market analyst Tony Sycamore said in a note, referring to WTI prices.

Both benchmarks settled down 58 cents a barrel in the previous session after prices fluctuated against expectations of heightened or reduced tensions in the Middle East.

Oil traders are waiting for Israel’s response to a missile attack by Iran on Oct. 1 that may involve hitting Tehran’s oil infrastructure and disrupt supplies, although reports said Israel would strike Iranian military, not nuclear or oil, targets.

US and Israeli officials are set to restart talks for a ceasefire and the release of hostages in Gaza in the coming days. Previous attempts to reach a deal have failed.

US Secretary of State Antony Blinken said on Thursday that Washington does not want a protracted Israeli campaign in Lebanon, while France has called for a ceasefire and focus on diplomacy.

Ceasefire talks have a small net negative impact on oil prices, Sycamore said, adding the focus is more on the conflict in Lebanon and Israel’s potential response to Iran.

Investors are also eyeing more clarity on Beijing’s stimulus policies, although analysts do not expect such measures to provide a major boost to oil demand from China, the world’s No. 2 consumer.

Goldman Sachs on Thursday left its oil, natural gas, and coal price forecasts unchanged, estimating Chinese stimulus boosts to energy prices that are modest relative to bigger drivers such as oil supply from the Middle East and winter weather for natural gas.

It forecasts Brent in the $70 to $85 range. 

JEDDAH: In a world increasingly marked by disparity, a senior UN official has issued a pressing warning: the gap between rich and poor nations must not continue to widen.

Speaking at the conclusion of the Multilateral Industrial Policy Forum in Riyadh on Oct. 24, Gerd Muller, director general of UNIDO, emphasized the critical need for global collaboration to tackle urgent challenges such as hunger, climate change, and economic inequity.

Muller expressed appreciation for Saudi Arabia’s role in organizing the “successful” event, highlighting the enthusiasm and commitment shown by participants. “That is really great. It helps confirm my basic optimism,” he remarked.

He underscored that effective solutions exist to confront today’s challenges, asserting that addressing hunger, fostering decent job creation, and promoting sustainable industrialization are essential for future progress.

“In a globalized world, everything is interconnected, and the crises we face are universal,” Muller noted, stressing that solidarity among nations is vital to bridge the growing divide.

He urged global leaders to prioritize fair and sustainable supply chains, declaring that multilateral cooperation is key to overcoming these issues. The insights gained from this forum will contribute to the Riyadh Declaration, which is slated for adoption at the next general conference in 2025.

In a significant development, Muller and Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef signed an agreement to establish a framework for strategic cooperation aimed at enhancing industrial development in Saudi Arabia. This partnership will focus on crafting effective industrial policies, improving data analysis, and boosting investments in key sectors.

The agreement also emphasizes the adoption of advanced technologies and sustainable practices to integrate local industries into global value chains.

Alkhorayef highlighted the collaborative spirit of the conference, stating, “We have spent a couple of days discussing serious issues with a focus on solutions.”

He appreciated the expertise shared during ministerial roundtables, which tackled crucial topics such as sustainable development goals and the impact of industrial policies on economic advancement.

He pointed out the significance of exploring how digitalization, including AI and automation, can transform industries and supply chains.

Addressing supply chain resilience, Alkhorayef called for cooperation to mitigate disruptions while seizing opportunities for economic growth. He extended an invitation to participants for the upcoming UNIDO General Conference in Riyadh, which will further build on the discussions held at the forum and contribute to the declaration.