Oil on the rise

Oil prices rose slightly after a three-day rally, supported by gains in broader financial markets and ongoing risks in the Middle East. Brent crude traded above $79 a barrel after rising 2.4% in the previous three sessions. U.S. crude was near $74. The rally in global stocks, despite the Fed’s downplaying of the possibility of a rate cut, is helping to support appetite for risk assets including crude. In the Middle East, Iran-backed Houthi militants continue to fire missiles at ships off the coast of Yemen, forcing many tankers to divert costly routes. Meanwhile, the U.S. killed a commander of a Tehran-backed militia in Iraq with an airstrike in retaliation for the deaths of three soldiers. Oil has remained in a relatively narrow range since the start of the year. Prices have been supported by tensions in the Middle East and supply cuts imposed by the OPEC+ group of producers, including Saudi Arabia and Russia. But this has been offset by rising production and record exports from the U.S., as well as slowing global demand growth. Priyanka Sachdeva, senior market analyst at brokerage Phillip Nova Pte, said oil was ignoring bearish signs and was sticking to the idea of a "soft landing" and second-half supply shortages.