Oil set for weekly gains on Iran, Russia supply risks

Brent futures up $1.58, or 2.55%, to $63.57 per barrel at 1741 GMT, US WTI crude up $1.60, or 2.77%, to $59.36

NEW YORK:

Oil prices rose on Friday, set for a weekly gain, on growing supply worries linked to the intensifying protests in oil-producing Iran and an escalation of attacks in Russia's war in Ukraine.

Brent futures were up $1.58, or 2.55%, to $63.57 per barrel at 1741 GMT, while US WTI crude was up $1.60, or 2.77%, to $59.36.

Both benchmarks climbed more than 3% on Thursday, following two straight days of declines. For the week, Brent is on track to climb 4.6%, while WTI has gained 3.5%.

Worries over the potential disruption of Iran's oil output grew as the civil unrest in the Middle Eastern country intensified.

A nationwide internet blackout was reported in Iran on Thursday, internet monitoring group NetBlocks said, as protests over economic hardships continued in the capital Tehran, the major cities of Mashhad and Isfahan as well as other areas. OPEC pumped 28.4 million barrels per day last month, down 100,000 bpd from November's revised total, a survey showed, with Iran and Venezuela posting the largest declines. Concerns about the spread of the Russia-Ukraine war also added to supply worries.

Still, global oil inventories are rising, and oversupply remains the main driver that could cap gains, Haitong Futures said. Unless risks around Iran escalate, the rebound is likely limited and hard to sustain.

Meanwhile, the White House is set to meet with oil companies and trading houses on Friday afternoon to discuss Venezuelan export deals.