Oil prices rallied on Friday, with US crude closing at a 13-year high as Russia invaded Ukraine and Western sanctions on Moscow threatened to disrupt global crude supplies.
Oil has risen sharply as fears of Western sanctions halting Russian oil exports, offsetting the possibility of more oil supplies from Iran, added to the news of a fire at a nuclear plant in Ukraine, frightening markets.
Oil prices were “a one-way street, but the possible return of Iranian crude supplies could offer great relief to this very tight market,” said Edward Moya, an OANDA analyst.
Reports say Iran and world powers are close to an agreement to restore the 2015 nuclear deal, which is expected to lead the United States to lift sanctions against Tehran, allowing more oil to flow into the world market.
Meanwhile, data from Baker Hughes on Friday showed that for the first time in five weeks, active US drilling has decreased in the last 5 days, which indicates a slowdown in production.
In this climate, the West Texas Intermediate April delivery rose $ 8.01, or 7.4%, to settle at $ 115.68 a barrel on the New York Mercantile Exchange. This was its highest price since September 2008, according to Dow Jones Market Data. During the week, the WTI price rallied 26.3%, the largest percentage increase since the 5-day period ended on April 3, 2020.
The Brent oil May delivery added $ 7.65, or 6.9%, to $ 118.11 a barrel, the highest level since February 2013.
Source: Capital
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