Falconpowers- Oil prices rose 5% in trading for the week ending on Friday, April 5th, amid anticipation in the markets of any signs of a direct conflict between Israel and Iran that could further deepen the supply shortage.
Brent crude increased by 52 cents or 0.57% to $91.17 per barrel at the close of the session, with a weekly gain of 4.8%.
Similarly, West Texas Intermediate (WTI) crude rose by 32 cents or 0.37% to $86.91 per barrel, recording a weekly gain of 4.5%. According to Reuters, both benchmark crudes reached their highest levels since October.
Oil prices continued to rise for the second consecutive week after Iran, the third-largest producer in OPEC, vowed revenge against Israel following an attack that resulted in the killing of several senior Iranian military officials.
Israel has not claimed responsibility for the attack on the Iranian embassy compound in Syria on Monday.
A NATO official stated on Thursday that ongoing Ukrainian drone attacks on refineries in Russia may have disrupted over 15% of Russia’s oil production capacity, affecting fuel production in the country.
The Organization of the Petroleum Exporting Countries (OPEC), along with its allies, including Russia under the OPEC+ alliance, maintained their oil supply policy unchanged this week and exerted pressure on some countries to increase compliance with production cuts.
The US jobs report released on Friday showed a greater-than-expected increase in new jobs in March and a consistent growth in wages.
The increase of 303,000 jobs last month indicates potential strong demand for oil, but it may delay the expected interest rate cuts by the Federal Reserve later this year.
Analysts at J.P. Morgan anticipate a global oil demand increase of 1.4 million barrels per day in the first quarter.
