Oil Prices Jump Amid Tanker Attacks and Ceasefire Impasse
Oil prices rose significantly on Friday due to attacks on oil tankers and a lack of progress towards a ceasefire agreement between the US and Iran. Brent crude futures increased by $1.45, or 1.67%, to settle at $88.52 a barrel, while US West Texas Intermediate (WTI) crude futures gained $1.15, or 1.42%, to settle at $82.40 a barrel.
Andrew Lipow, president of consulting firm Lipow Oil Associates, commented on the price rise, stating that it is driven by new attacks on oil tankers and a lack of progress on a ceasefire agreement. He warned that if shipping traffic through the Strait of Hormuz continues to be disrupted, crude oil prices could reach $80 a barrel, while diesel and gasoline prices are expected to surge even higher.
OPEC forecasts suggest slower growth in oil demand amid supply disruptions in the Middle East, while US crude oil inventories posted their largest weekly increase in over three years. The price rise is significant, with weekly gains potentially reaching 6% for Brent and 5.4% for US WTI.