There is no doubt that a severe disruption to the transit of oil through this vulnerable route would be extremely serious,” said consultancy FGE Energy in a note.
U.S. oil soars 10% in week on fears of U.S.-Iran conflict
NEW YORK (Reuters) - Oil futures rose 1% on Friday, with U.S. crude up 10% in the week and global benchmark Brent gaining 5%, on fears the United States could attack Iran and disrupt flows from the Middle East, which provides more than a fifth of the world’s oil output.
U.S. gasoline futures, meanwhile, jumped around 4% following a massive fire at Philadelphia Energy Solutions’ refinery in Philadelphia, the largest on the U.S. East Coast.
“The heightening of tensions between the United States and Iran has evolved as primary price motivator in spiking oil values,” Jim Ritterbusch of Ritterbusch and Associates said in a note.
While the rise in U.S.-Iranian tensions has largely driven the crude price gains, analysts said an early July meeting of the Organization of the Petroleum Exporting Countries (OPEC) and its allies to reassess production targets, a potential softening of trade tensions between the United States and China and the refinery fire were also supporting prices.
LEARN MORE
POSSIBLE IMPACTS
