On Friday, oil prices closed higher, marking an approximate 6% increase week-over-week. This surge was influenced by growing concerns over supply disruptions from the Middle East and tightened markets for refined products due to ongoing outages.
Brent crude futures saw a rise of 56 cents, or 0.7%, closing at $82.19 per barrel. Similarly, U.S. West Texas Intermediate crude futures experienced an increase of 62 cents or 0.8%, ending at $76.84 per barrel.
The upward trend in oil futures during the week was largely propelled by the situation in the Middle East, particularly following Israeli Prime Minister Benjamin Netanyahu’s rejection of a ceasefire proposal from Hamas on Wednesday. This increase comes after a 7% decline in the previous week.
Jim Ritterbusch, President of Ritterbusch and Associates LLC in Galena, Illinois, expressed the view that significant fluctuations in weekly oil prices are likely to continue for the remainder of the month. He noted that this trend might only be altered by major developments in the Middle East that could impact global oil balances.
In a related update, U.S. energy companies increased their rig count this week, adding 4 oil and natural gas rigs, bringing the total to 623. This is the highest count since mid-December, according to the closely monitored report by energy services firm Baker Hughes.
This week, U.S. domestic oil production reached a record high of 13.3 million barrels per day, as reported by the U.S. Energy Information Administration. This rebound follows last month’s severe cold weather, which led to extensive shutdowns in oil-producing areas.
Meanwhile, Israeli military actions in the Gaza Strip persisted on Friday, maintaining their intense air strike campaign. Notably, Thursday’s strikes on Rafah, a city near the southern border, contributed to a roughly 3% increase in oil prices.
