Oil scored strongest weekly gain since June on Russia supply risks

Oil prices rose on Friday, closing out their biggest weekly increase in more than three months, as escalating disruptions to Russian fuel exports and stronger US economic data lifted sentiment.

Brent crude settled 71 cents higher, or 1.0%, at $70.13 a barrel.

WTI added 74 cents, or 1.1%, to $65.72. Both benchmarks gained more than 5% on the week, their sharpest advance since mid-June.

Prices were buoyed by Ukraine’s intensified drone strikes on Russian refineries, prompting Moscow to extend its ban on gasoline exports and impose partial curbs on diesel shipments through year-end. The attacks have curtailed refining capacity and raised concerns over Russia’s ability to sustain flows to major buyers in Asia. Washington’s push for allies such as Turkey and Hungary to scale back Russian imports further underlined the risks to supply.

Stronger-than-expected US economic growth provided additional support, with revised data showing GDP expanding at a 3.8% annualised rate in the last quarter. A weaker dollar also made dollar-denominated commodities more attractive.

Still, analysts cautioned that rising supply from Iraq’s Kurdistan region and expectations of a global surplus later this year could cap further gains, leaving the market finely balanced between geopolitical risks and looming excess output.

Written: Aiman Haikal