Oil futures rose by more than $1 a barrel on Friday, driven by attacks on oil tankers and little progress toward a ceasefire agreement between US President Donald Trump’s administration and Iran’s leadership.
Brent crude futures rose $1.45, or 1.67%, to settle at $88.52 a barrel, while US West Texas Intermediate (WTI) crude futures gained $1.15, or 1.42%, to settle at $82.40 a barrel.
Weekly gains could reach 6% for Brent and 5.4% for US WTI.
“We’re seeing prices rise as we approach the start of the week, following new attacks on oil tankers and a lack of progress on a ceasefire agreement,” said Andrew Lipow, president of consulting firm Lipow Oil Associates.
He said a “day of reckoning” could be approaching if shipping traffic through the Strait of Hormuz continues, as the waterway carries around 20% of global supplies.
“Crude oil could reach $80 a barrel, but diesel is at $180 a barrel and gasoline at $130 a barrel, which is affecting consumers,” he added.
Amid supply disruptions in the Middle East, OPEC forecasts pointed to slower growth in oil demand, while US crude oil inventories posted their largest weekly increase in more than three and a half years.
Reuters
