Oil prices edged higher on Friday, marking their strongest weekly gains since mid-June, amid rising geopolitical tensions and disruptions in global supply. Brent crude futures rose 15 cents, or 0.2 percent, to $69.57 per barrel, while US West Texas Intermediate (WTI) crude gained 23 cents, or 0.4 percent, to $65.21. Both benchmarks are up more than 4 percent this week.
Traders highlighted that Ukrainian drone strikes on Russian oil facilities, coupled with NATO’s warning over airspace violations, fueled concerns about crude availability. Analysts said these developments coincided with Russia’s fuel export curbs, intensifying pressure on international markets.
Deputy Prime Minister Alexander Novak confirmed that Russia will maintain its gasoline export ban and impose a partial diesel export ban until the end of the year. The move follows disruptions to refining capacity, which have already caused regional fuel shortages. Officials also indicated that crude production might be scaled back further, amplifying uncertainty.
Earlier in the week, US crude inventories dropped unexpectedly, pushing prices higher. However, robust economic data from the United States capped gains. Revised Commerce Department figures showed the US economy grew at a 3.8 percent annualized pace in the last quarter, stronger than previously reported. Analysts noted this could make the Federal Reserve cautious about further rate cuts despite last week’s 25-basis-point reduction.
Adding to the complex market picture, the Kurdistan Regional Government announced plans to resume oil exports within 48 hours, which could ease global supply pressures.
Despite these mixed signals, the market remains highly sensitive to geopolitical events, particularly those involving Russia. “Ukrainian drone strikes, NATO’s warning, and Russia’s fuel export curbs have all combined to push oil higher this week,” said Tony Sycamore, an analyst at IG.
With Brent and WTI on track for their strongest weekly rises in over three months, market watchers will closely follow Russia’s next moves on production and how central banks respond in the coming weeks.
This week’s developments underscore the global oil market’s vulnerability to political and logistical disruptions, particularly amid ongoing tensions between Ukraine and Russia.
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