Russian Supply Concerns Support Oil Prices Amid Ongoing War Tensions

Oil prices held above $83 per barrel on Friday, supported by concerns over Russian supply disruptions. The market's attention shifted to Eastern Europe as tensions escalated in the Russia-Ukraine war.

Russian President Vladimir Putin stated that talks with Ukraine had yielded no results and that Russia was preparing to intensify the conflict. Ongoing Ukrainian strikes on Russian refineries and ports are disrupting the country's energy infrastructure, potentially constraining its ability to export crude and refined products.

Despite these concerns, oil prices are still set to end the week lower due to signs of diplomatic progress in the Middle East and improving supply prospects through the Strait of Hormuz. Iran's military announced a revenue-sharing agreement with Oman over the strategic waterway, though Tehran emphasized that this arrangement does not guarantee an immediate reopening of the strait.