Oil prices extended gains on Friday, heading for a weekly gain of more than 4% as the Ukraine war intensified as Russian President Vladimir Putin warned of a global conflict.
Brent crude futures rose 10 cents, or 0.1%, to $74.33 a barrel by 0448 GMT. WTI crude futures rose 13 cents, or 0.2%, to $70.23 a barrel.
Both contracts rose 2% on Thursday, set to cap gains of more than 4% this week. That was the strongest weekly performance since late September.
Putin fired ballistic missiles at Ukraine on Thursday as a warning of a global conflict after the U.S. and Britain allowed Kyiv to attack Russia with its weapons. That has raised the risk of oil supply disruptions from one of the world’s biggest producers.
Russia said this month it was producing about 9 million barrels of oil a day despite production declines following import bans linked to its invasion of Ukraine and supply restrictions by producer group OPEC+.
Ukraine has targeted Russian oil infrastructure, including using long-range attack drones to hit four Russian refineries in June.
Rising U.S. crude and gasoline stockpiles and forecasts of oversupply next year have limited price increases.
The baseline scenario is for Brent to remain between $70 and $85, with high spare capacity limiting price increases and the price flexibility of OPEC and shale gas supplies limiting price declines.
However, the risks of tensions are rising and Brent could rise to around $85 a barrel in the first half of 2025 if Iran’s supply falls by 1 million barrels a day due to tougher sanctions imposed under U.S. President-elect Donald Trump.
Some analysts are predicting another increase in U.S. oil inventories in next week’s data, which would have negative implications for crude and essential commodities.
Meanwhile, China, the world’s largest crude importer, announced policy measures on Thursday to boost trade, including support for energy imports, amid concerns over Trump’s threats to impose tariffs.
