Oil prices are heading for their biggest weekly gains in months, as growing concerns over global energy supplies continue to support the market.
On Friday, Brent crude fell 72 cents, or 0.72%, to $99.97 per barrel. Despite the drop, Brent is still on track to finish the week up about 13.5%.
U.S. West Texas Intermediate (WTI) crude also slipped around 70 cents, or 0.76%, to $91.49 per barrel. Even so, WTI is expected to end the week with a strong gain of nearly 10.9%.
The recent surge in oil prices was fueled by worries about supply disruptions. On Thursday alone, Brent jumped 7%, while U.S. crude rose 6.2%. Brent briefly moved above the $100-per-barrel level for the first time since May.
One of the main factors behind the rally was the announcement by Yemen’s Ansar Allah movement that it had targeted two Saudi oil tankers in the Red Sea. The incident raised concerns about the safety of oil shipments moving through the region.
Investors are particularly focused on the Bab el-Mandeb Strait, one of the world’s most important oil shipping routes. The waterway connects the Red Sea to the Indian Ocean and handles a significant share of global energy trade. Any disruption there could affect oil supplies and push prices even higher.
Adding to supply concerns, Kazakhstan experienced a temporary drop in oil production after the shutdown of its main export route, further tightening market sentiment.
With geopolitical tensions rising and supply risks increasing, oil markets remain highly sensitive to developments in key energy-producing regions.
