Oil surged beyond $111 a barrel in a tumultuous session on Friday, as concerns about disruptions to Russian oil exports due to Western sanctions outweighed the chance of increased Iranian supplies in the case of a nuclear deal with Tehran.
Reports of a fire at a Ukrainian nuclear power facility rattled markets before authorities declared the fire in a structure designated as a training centre had been doused.
Brent crude reached a high of $114.23 a barrel and was up 63 cents, or 0.6 percent, at $111.09 by 0920 GMT. The West Texas Intermediate (WTI) crude oil price in the United States rose by 64 cents, or 0.6 percent, to $108.31 after reaching a high of $112.84.
‘Russia’s invasion of Ukraine ensures that supply concerns will stay front and centre,’ said Stephen Brennock of oil trader PVM, adding that there is a ‘new feeling of urgency from all parties concerned’ to resurrect the Iranian nuclear deal.
Crude oil touched a decade high this week, and prices are on track for their best weekly increases since the middle of 2020, with the US benchmark up more than 18 percent and Brent up 13 percent.
Prices bounced in a $10 range on Thursday but closed lower for the first time in four days as investors concentrated on the resumption of the Iran nuclear deal, which is expected to boost Iranian oil exports and ease supply constraints.
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