Oil rises 3% amid fears of disruption to Middle East supplies
Oil prices rose about 3% today, Friday, to the highest level in a week, amid investors’ concerns about the widening scope of the conflict in the Middle East, which could cause disruption to global crude oil supplies.
By 17:40 GMT, Brent crude futures rose $2.25, or 2.6%, to $90.18 per barrel. US West Texas Intermediate crude futures also increased $2.14, or 2.6%, to $85.35 per barrel.
The price difference between Brent and West Texas Intermediate crude is heading to reach its highest level since July.
For the week as a whole, Brent fell about 2% while WTI fell about 3%.
Although the developments did not directly affect supplies, fears increased that the conflict in the Gaza Strip could spread and disrupt supplies from major crude oil producer Iran, which supports Hamas. A broader war could also affect shipments from Saudi Arabia, the world’s largest oil exporter, and other major producers in the Gulf.
Analysts from Goldman Sachs kept their expectations for the price of Brent in the first quarter of 2024 at $95 per barrel, but added that the decline in Iranian exports may push core prices to rise by about 5%.
(Reuters)
2023-10-27 21:03:41
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