Oil prices rose on Friday, set for a sixth straight week of gains, as geopolitical tensions continued to fuel supply concerns. Brent crude futures rose 63 cents, or 0.7 percent, to $89.97 a barrel by 1013 GMT, following reaching $91.04 in London on Thursday, the highest level since October 2014.
West Texas Intermediate crude futures rose 49 cents, or 0.6 percent, to $87.10 a barrel. US crude also reached a seven-year high of $88.54 earlier in the session.
The two are on track to record their longest streak of weekly gains since October.
Oil prices continue to receive support from fears that the Ukrainian crisis will cause turmoil in energy markets. But Russian Foreign Minister Sergei Lavrov said on Friday that Moscow did not want war with Ukraine.
Russia, the world’s second-largest oil producer, is at loggerheads with the West over Ukraine, raising fears that energy supplies to Europe might be disrupted, although the concerns center on gas supplies rather than crude.
“The market is very volatile with news of the development of the situation between Russia and Ukraine,” said Phil Flynn, senior analyst at Price Futures Group. There is uncertainty regarding what will happen.”
But prices were also hit following the US Federal Reserve said on Wednesday it was likely to raise interest rates in March and planned to end bond purchases in the same month to curb inflation.
The dollar rose following the announcement, making oil more expensive for buyers holding other currencies. On Thursday, the dollar index rose to its highest level since July 2021. (Archyde.com)
