Oil prices rise due to fear of tight supplies

Oil prices rose about 1.5 percent on Friday, settling for the second consecutive weekly increase, as looming European Union sanctions on Russian oil raised the prospect of tight supplies and made traders ignore concerns about global economic growth.
Brent crude futures rose $1.49, equivalent to 1.3 percent, to settle at $112.39 a barrel. US West Texas Intermediate crude jumped $1.51, or 1.4 percent, to $109.77 a barrel.

“In the short term, the fundamentals for oil are positive, and we are only hindered by fears of an economic slowdown in the future,” said Phil Flynn, an analyst at Price Futures Group.

On a weekly basis, West Texas Intermediate rose by about 5%, and Brent crude by about 4%, as the European Union revealed plans to ban Russian oil as part of a package of tougher sanctions due to the conflict in Ukraine.

The number of US oil rigs, an early indicator of future production, rose 5 to 557 this week, the highest level since April 2020.