NEW YORK: Oil prices climbed about three per cent to a one-week high on Friday on worries that tensions in Israel and Gaza could spread into a wider conflict that could disrupt global crude supplies.

Brent futures rose $2.25, or 2.6pc, to $90.18 a barrel by 1:40pm EDT (1740 GMT). US West Texas Intermediate (WTI) crude rose $2.14, or 2.6pc, to $85.35. Brent’s premium over WTI was on track for its highest since July, making it more attractive for energy firms to send ships to the US to pick up crude for export.

For the week, Brent remained down about 2pc and WTI down about 3pc.

Trading was choppy. Early in the session, oil prices soared by more than $2 a barrel after the US military struck Iranian targets in Syria. Prices briefly turned negative as markets digested various reports on mediation talks with Hamas and Israel led by Qatar in coordination with the US.

“We are at the mercy of the next headline ... and I think that’s kind of what we’ve been seeing today with the price swings,” said Phil Flynn, an analyst at Price Futures Group.

Published in Dawn, October 28th, 2023