(Bloomberg) — Oil edged higher, after notching its first gain in five sessions, with eyes on developments in the Middle East after the death of Hamas leader Yahya Sinwar.

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Brent advanced toward $75 a barrel, while West Texas Intermediate rose to around $71. The killing of Sinwar by Israeli soldiers led President Joe Biden to renew calls for a cease-fire in Gaza, although Prime Minister Benjamin Netanyahu said operations are “yet to be completed.”

Sentiment was lifted by a report on Thursday that showed US oil stockpiles shrank 2.19 million barrels last week, indicating healthy consumption in the biggest crude user. Data from China on Friday also showed tentative signs of economic improvement in the second-biggest economy, although apparent oil demand fell from a year earlier.

“China demand is an important piece in the whole equation,” said Zhong Liang Han, a Singapore-based investment strategist at Standard Chartered Bank. “But we do think supply-side issues are the larger piece, and there’s quite a bit of excess supply expected.”

Brent’s latest move higher has failed to offset sharp declines on Monday and Tuesday, with futures set to notch a 5% drop this week after concerns eased that Israel would strike Iran’s energy infrastructure in retaliation for an attack at the start of the month. In the longer term, the International Energy Agency forecast that rising global supply could lead to a sizable surplus next year.

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