Oil prices closed nearly 2% higher on Friday, fueled by escalating concerns regarding global supply disruptions. Mounting protests in Iran and the intensifying conflict between Russia and Ukraine are key factors driving market anxieties.
Brent crude rose by $1.35 to reach $63.34 per barrel, while West Texas Intermediate (WTI) crude climbed $1.36 to $59.12. Over the course of the week, Brent crude recorded gains of approximately 4%, compared to around 3% for its American counterpart.
The escalating unrest in Iran has sparked fears of disruptions to its oil production, particularly against the backdrop of declining OPEC output in the past month. Iran and Venezuela have registered the most significant production decreases. Furthermore, the ongoing military developments between Russia and Ukraine, specifically the targeting of energy infrastructure, have amplified concerns surrounding supply security.
However, reports caution that rising global inventories could limit further price gains. Analysts suggest that any additional price increases will remain contingent upon the exacerbation of geopolitical risks, particularly in Iran. The situation remains volatile and closely monitored by market participants.
