Oil prices increased on Friday. After a brief dip in the morning trade, prices stayed in the profit zone by early afternoon. A barrel (159 liters) of Brent crude for October delivery cost $79.47, up 31 cents from the previous day. The price for a barrel of West Texas Intermediate (WTI) for September delivery rose by 37 cents to $76.56.
On a weekly basis, oil prices also rose. Since Monday, Brent oil has increased by more than two dollars per barrel. “The tense situation in the Middle East, which could escalate at any time and drive prices even higher, is providing support,” said Barbara Lambrecht, a commodity expert at Commerzbank. In recent days, fears of a retaliatory strike by Iran and its allies against Israel had given oil prices a significant boost.
Lambrecht believes that geopolitical risks in the oil-rich region will continue to play a crucial role in price development in the coming week. Experts at Postbank also identified additional reasons for the rise in oil prices. They noted that a decline in U.S. oil reserves had supported prices. Moreover, concerns about a possible recession in the U.S. had eased.
With the rise over the week, oil prices have halted their downward trend of the past trading weeks. On Monday, prices had temporarily fallen to their lowest level in seven months before the recovery began. A series of disappointing economic data from China, the U.S., and the Eurozone had repeatedly fueled demand concerns and triggered a decline in oil prices from mid-July to early August.
