Oil prices rose about 3% today, Friday, to the highest level in a week, amid investors’ concerns about the expansion of the conflict in the Middle East, which could cause disruption to global crude oil supplies.
Brent crude futures rose $2.55, or 2.9%, to set the settlement price at $90.48 per barrel, while US West Texas Intermediate crude increased by $2.33, or 2.8%, to set the settlement price at $85.54.
Brent's premium over West Texas Intermediate crude rose to its highest levels since March, making it more attractive for energy companies to send ships to the United States to obtain crude oil for export.
Over the course of the week, Brent fell about 2%, while West Texas Intermediate crude fell about 4%.
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 they added that the decline in Iranian exports may push core prices to rise by about 5%.
