Oil futures rose by more than $1 a barrel on Friday amid attacks on tankers and a lack of progress on a peace agreement between the Trump administration and Iran’s leadership. Brent crude futures settled at $88.52 a barrel, up $1.45, or 1.67%. U.S. West Texas Intermediate crude futures ended trading at $82.40, up $1.15, or 1.42%. Brent and WTI prices rose 6.0% and 5.4% for the week, respectively. “We are seeing oil prices rise heading into the weekend after new attacks on tankers and a lack of progress on a ceasefire agreement,” said Andrew Lipow, president of Lipow Oil Associates.
“Oil prices may be $80 a barrel, but diesel prices are $180 a barrel and gasoline is $130 a barrel, and that is what is hitting the consumer,” Lipow said. On Thursday, the U.S. said it could sustain a naval blockade of Iran indefinitely and ramp up economic pressure on Tehran in response to stalled ceasefire talks.
Exports of crude oil from Russia’s Sheskharis terminal at the Black Sea port of Novorossiysk were suspended on Friday after a drone attack, exacerbating disruptions in one of the country’s key export hubs. Ukraine’s attack on the port of Novorossiysk also pushed prices higher.