Oil prices rose by more than 1% during Friday’s trading session and are heading towards the second consecutive weekly gain in light of the continuing conflict in the Middle East.
In terms of trading, Brent crude futures rose by about 1% to $93.33 per barrel.
US crude contracts also rose by 1.17%, recording $90.42 per barrel.
The gains in oil prices coincide with expectations of the landing of Israeli ground forces, which has fueled fears of a deepening of the conflict in the Middle East.
IG analyst Tony Sycamore said things appear to be getting out of control, noting that the biggest concern remains escalating tensions in the Middle East and the possibility of seeing the Israel Defense Forces enter Gaza this weekend, which carries upside risks for oil prices.
According to Sycamore, the price of US crude could rise to the highest level since the end of September at $95.03 per barrel, if it breaches the resistance level at $91.5 per barrel.
Crude prices also received support from expectations of an increase in the deficit in the last quarter of this year, after the major producers – Saudi Arabia and Russia – extended supply cuts until the end of this year.
In a separate context, the administration of US President Joe Biden eased sanctions on the oil and gas sector in Venezuela.
Commenting on this step, an OPEC+ source said: “Let us see the level of increased production… It may be small quantities, and then we are unlikely to see a change in policy.”
