The conflict in the Middle East drove oil prices higher on Friday, with Brent and WTI heading towards the second straight week of gains.
According to Sophie Lund-Yates of Hargreaves Lansdown: “The oil price has topped $92 a barrel as concerns about recent conflict spreading throughout the Middle East rise. If Iran were to be pulled into the situation, there are fears the oil price could top $150 a barrel for Brent crude. While the demand picture remains muddied, the market is very much reacting to anxiety over supply.”
WTI crude was up 0.74% on Friday, while Brent crude is up 0.65%.
As Israel prepares for a potential ground invasion into Gaza, the concerns around oil supply from the Middle East continue to grow.
On Thursday, the Israeli Minister of Defence told the troops gathered at the border that they should be prepared to move into Gaza soon.
Russia and Saudi supply
In addition to concerns around the Middle East conflict, there are ongoing oil supply shortages from Saudi Arabia and Russia.
According to the official S&P Global Commodities at Sea data, total Russian shipped oil and oil products exports consisted of an average of 5.27 mb/d, the lowest supply of oil from the country since September 2022.
Russia has banned exports of oil and oil products to some countries as the price cap continues to be enforced.