Oil prices extended their gains, Friday, heading towards recording increases for the second week, amid increasing fears of the expansion of the scope of the Israel-Gaza conflict in the Middle East and thus disrupting supplies from one of the largest crude production regions in the world.
Oil prices are also benefiting from expectations of a widening deficit in Q4 after Saudi Arabia and Russia, the main producers, extended supply cuts until the end of the year and amid falling inventories, especially in the United States.
The US Department of Energy said Thursday that Washington is seeking to purchase 6 million barrels of crude to deliver to the Strategic Petroleum Reserve in December and January as it continues its plan to refill emergency reserves.
Separately, OPEC+ sources told Reuters that the temporary lifting of US oil sanctions on Venezuela, a member of the Organization of the Petroleum Exporting Countries (OPEC), is unlikely to require any changes in the policy of the OPEC+ alliance at the present time, as the production recovery is likely to be gradual.
Brent crude futures increased 1.1% to $93.35 a barrel. US West Texas Intermediate (WTI) also rose by 1.1% to $90.37 per barrel.
The most active December contract for WTI reached $89.36 per barrel, up 1.1%.
Both contracts are headed for a second week of gains as an assualt in a hospital in Gaza this week and expected ground military operations by Israeli forces heighten fears of an expanding conflict in the Middle East.
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