Oil futures rallied on Friday with US crude up 10% in the week and global benchmark Brent gaining 5% on fears of a US military attack on Iran that would disrupt flows from the Middle East, which provides more than a fifth of the world’s oil output.
“A lot of the oil produced in the world comes from very troubled areas, and occasionally we get reminders of that,” said Gene McGillian, vice president at Tradition Energy in Stamford, Connecticut.
The rise in US-Iranian tensions has largely driven the gains. An early July meeting of the Organization of the Petroleum Exporting Countries and its allies to reassess production targets and a potential softening of trade tensions between the United States and China were also supporting prices.
Brent crude was up 90 cents at $65.35 a barrel at 10:30 a.m. EDT [1430 GMT], on course for its first weekly gain in five weeks of 5.4%. Read More
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