Oil prices post biggest weekly gain in over a year amid Middle East tensions
Brent crude futures rose 43 cents, or 0.6%, to $78.05 a barrel. U.S. West Texas Intermediate (WTI) futures gained 67 cents, or 0.9%.
On a weekly basis, Brent crude rose more than 8%, marking its biggest weekly gain since January 2023.
Oil prices rose on Friday, posting their biggest weekly gains in over a year due to the growing threat of an all-out war in the Middle East, although gains were limited as U.S. President Joe Biden discouraged Israel from attacking Iranian oil facilities.
Brent crude futures rose 43 cents, or 0.6%, to $78.05 a barrel. U.S. West Texas Intermediate (WTI) futures gained 67 cents, or 0.9%, to $74.38 a barrel.
Israel has vowed to retaliate against Iran for launching a barrage of missiles at Israel on Tuesday, following Israel’s killing of the Iran-backed Hezbollah leader last week. Oil analysts have warned their clients about the potential ramifications of a broader conflict in the Middle East.
Oil prices climbed nearly 2% during the session but fell sharply after Biden suggested that if he were in Israel’s position, he would consider alternatives to striking Iran’s oil fields.
For the week, Brent crude gained over 8%, its largest weekly rise since January 2023. WTI rose 9.1% for the week, the biggest increase since March 2023.
An attack on Iranian energy facilities is unlikely to be Israel’s preferred course of action, according to JPMorgan commodity analysts in a note on Friday. However, they added that the low levels of global oil inventories suggest prices will remain elevated until the conflict is resolved.
Citing data from vessel tracking service Kpler, they noted that inventories are below last year’s levels, when Brent was trading at $92 a barrel, and that at 4.4 billion barrels, they are at the lowest levels on record.
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