VINACHEM

Crude prices broke above $90 per barrel on Friday, giving the oil rally its biggest week since early February.

Brent crude, the global oil benchmark, reached as high as $87.50 by 1:00 p.m. in New York, marking a peak not seen since the $92.45 reached on October 23. For the week, Brent was up 5%, the most since a 6.3% rally since the week that ended on February 2.

US crude, tied to the West Texas Intermediate (WTI) benchmark, hit a session high of $87.49 - the loftiest level since the $88.29 high on October 23. The WTI benchmark gained 5% on the week -, the most since a 6.3% rise during the week that ended on February 2.

This week's run-up in oil, the second in a row, came as Russian energy facilities faced new threats from Ukrainian drone attacks, while the conflict in the Middle East appeared to escalate. Both events have a bearing on oil, with Russia being one of the largest exporters of the commodity and the Gaza conflict zone being in the proximity of some of the biggest energy producers.

"The likelihood that continued restricted Russian product exports could further tighten US petroleum supplies has suddenly forced recalculation of US [oil] balances across the rest of this month and possibly beyond," analyst Jim Ritterbusch said in a note issued earlier this week by his Ritterbusch and Associates company.
In the Middle East, Iran has vowed a heightened war against Israel after an Israeli airstrike that killed two generals and five other military advisers at the Iranian embassy compound in Damascus.

Analysts have warned that a direct Iranian involvement in the Gaza crisis could spark a region-wide conflict with plausible impact on oil supply.  – Sputnik –