Oil Prices Poised for Upward Trend as Supply Tightens

5 Apr 2024 , 10:32 AM

With support from geopolitical tensions in Europe and the Middle East, worries about a tighter supply, and optimism about the expansion of fuel demand globally as economies strengthen, oil prices continued to rise on Friday and were heading for a second weekly gain.

Brent crude had gained 49 cents, or 0.5%, to $91.14 per barrel. West Texas Intermediate crude for the United States was up 37 cents, or 0.4%, to $86.96 per barrel.

On Thursday, both benchmarks reached their highest level since October.

The third-largest OPEC producer, Iran, promised retaliation against Israel for an attack that killed high-ranking Iranian military men, and as a result, Brent and WTI are expected to rise by more than 4% this week, marking their second consecutive week of gains.

Israel has not taken credit for Monday’s attack on the facility housing Iran’s embassy in Syria.

According to a NATO officer on Thursday, ongoing Ukrainian drone attacks on Russian refineries may have interrupted over 15% of Russian capacity, affecting the nation’s gasoline output.

This week, OPEC and its allies—known as OPEC+—under the leadership of Russia maintained its policy on oil supply while applying pressure on certain nations to tighten their adherence to output reductions.

A U.S. employment report for March is expected to be released later on Friday, and investors are looking forward to it for further information about the country’s economy and monetary policy.

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