Oil on track for weekly gains despite US waiving Russian purchase rules

Oil ​prices extended their climb on Friday and were on track for weekly gains as disruptions in the Gulf from the Middle East war ‌outweighed U.S. and International Energy Agency measures to ease supply concerns, Reuters reported.

Brent futures for May rose 88 cents, or 0.9%, to $101.34 a barrel at 0918 GMT, heading for a weekly increase of 9%. U.S. West Texas Intermediate (WTI) crude for April was up 26 cents, or 0.3%, at $95.99 a barrel, set for a 6% uptick for the ​week.

The U.S. issued a 30-day license for countries to buy Russian oil and petroleum products stranded at sea. Treasury Secretary Scott Bessent ​said it was a step to stabilise global energy markets roiled by the U.S.-Israeli war on Iran.

"Russian oil was already going to ⁠buyers; this is not bringing additional barrels to the market," said Bjarne Schieldrop, chief commodities analyst at SEB.

"The market is starting to get ​very concerned that this (war) is going to last longer. The big fear is that we have severe damage to oil infrastructure, which would ​be a lasting loss of supply."

The announcement on Russian oil came a day after the U.S. Energy Department said Washington would release 172 million barrels of oil from its Strategic Petroleum Reserve to help curb skyrocketing oil prices.

That plan was coordinated with the International Energy Agency, which has agreed to release a record 400 million barrels of oil from ​strategic stockpiles, including the U.S. contribution.

Fleeting relief sparked by the IEA release, however, was shattered by a re-escalation of Middle East risks, IG ​analyst Tony Sycamore said in a note.

Iran's new Supreme Leader Ayatollah Mojtaba Khamenei said Iran would fight on, and keep the Strait of Hormuz shut as leverage ‌against the ⁠United States and Israel.

Two fuel tankers in Iraqi waters were struck by explosives-laden Iranian boats, Iraqi security officials said on Thursday. An Iraqi official told state media the country's oil ports have completely stopped operations.

U.S. President Donald Trump said on Thursday the United States stood to make significant money from oil prices, which have been driven higher by the war with Iran. But stopping Iran from having nuclear weapons was far more important, he ​said.

Both benchmark prices surged more than ​9% on Thursday and hit ⁠their highest levels since August 2022.

Goldman Sachs predicted on Friday that Brent oil would average more than $100 a barrel in March and $85 in April, as energy prices remain volatile due to the Iran war, damage to ​Middle East energy infrastructure and disruptions in the Strait of Hormuz.

Brent is more supported than WTI as ​Europe is more ⁠susceptible to energy security issues, while the U.S. is able to stave off its exposure due to its domestic output, said Emril Jamil, senior analyst at LSEG.

In another sign the disruptions may drag on, sources told Reuters that Iran had deployed about a dozen mines in the strait, a move that ⁠is likely ​to complicate the reopening of the critical waterway.

Meanwhile, U.S. Treasury Secretary Scott Bessent told ​Sky News in an interview that the U.S. Navy, perhaps with an international coalition, would escort vessels through the Strait of Hormuz when it is militarily possible.