Oil prices rose on Friday on concerns that Middle East conflict could disrupt supplies of this key export, Crude. U.S. crude futures rose 0.8% to $78.24 a barrel, while the Brent contract rose 0.8% to $74.35.
Brent crude futures are set to gain around 8% for the week – their steepest since February 2023, while US crude futures’ 7.5% weekly rise would be the biggest since March last year.
If Iranian production continues to decline by 1 million barrels per day, expect oil prices to peak at around $20 a barrel next year.
While OPEC has enough spare capacity to offset the loss of Iranian supplies, most of that capacity is in the Middle East Gulf, and oil production could be vulnerable if these conflicts continue.
