Weekly Oil Gains Set to Reach the Largest Since Mid-July as Supply Concerns Intensify

On Friday, oil prices rose, with the weekly gains on track to be the largest since mid-July. Heightened tensions in the Middle East and renewed hostile actions between the US and Iran have intensified market concerns over risks to Middle Eastern oil supplies. This week, Brent crude rose a total of 7.6% and WTI crude climbed 10.4%, both set to post the biggest weekly increases since the week ending July 20. On Friday, ANZ analysts raised their short-term forecast for Brent crude to $95 per barrel, stating that if Middle East conflicts escalate further, there is upside risk for oil prices. The analysts noted: "The market is entering a delicate adjustment phase. High inventories have helped absorb the initial supply crisis, but as these buffers wane, the current challenge in the market is how to maintain the supply-demand balance."