Oil prices are up 2%, reducing the losses in the week

LAST UPDATE: 18.00

Oil prices rose on Friday and reduced their losses in the week, as traders weigh the possible options of replacing Russian crude on the world market after the Russian invasion of Ukraine.

In addition, the cessation of talks on Iran’s nuclear program and reports of a drone strike on a Saudi Aramco refinery in Riyadh by pro-Iranian Houthi rebels contributed to the rise in crude at today’s meeting.

Brent futures are up $ 2.16, or 2%, at $ 111 a barrel, after falling 1.6% in the previous session.

West Texas Intermediate was up 2.4%, or $ 2.5, at $ 108.59 a barrel, after falling 2.5% in yesterday’s session.

In a week of volatile trading marked by talks over an embargo on Russian oil and subsequent possible supply surpluses from Iran, Venezuela and the United Arab Emirates as fighting escalates in Ukraine, Brent is on a 7-week orbit. , after reaching a 14-year high of $ 139.13.

US crude is set to end the week down 8% after hitting a high of $ 130.50 a barrel.

Both contracts could well move below $ 100 a barrel, after any news that is perceived as a relaxation of supply problems, says an OANDA analyst.

He stressed that similarly, both contracts could skyrocket to $ 115 a barrel with any negative developments.

Prices fell this week after it became known that the European Union, which is deeply dependent on Russian energy, would not join the United States and the United Kingdom in banning Russian oil.

In the short term, supply gaps are unlikely to be filled by additional production by OPEC + members, as Russia is part of this group.

The Commonwealth Bank estimates that Brent will average $ 110 a barrel in the second and third quarters of the year, but sees oil ascending to as high as $ 150 a barrel in the short term.

“All this is very uncertain. It is very difficult to draw any conclusions,” he said.