Oil prices extended their upward trend on Friday, buoyed by escalating supply concerns after drone strikes hit oil facilities in northern Iraq and as global demand continues to rise with the summer travel season in full swing.
As of 04:51 GMT, Brent crude futures rose by 29 cents, or 0.40%, to $69.81 per barrel, while U.S. West Texas Intermediate (WTI) crude gained 27 cents, or 0.42%, to settle at $67.81 a barrel. The latest price uptick follows a $1 jump in both benchmarks on Thursday.
Market analysts attribute the increase to ongoing drone attacks in Iraq’s Kurdistan region, which have disrupted about half of the area’s oil production over a four-day span. The geopolitical tension has amplified concerns over potential supply shortfalls.
In addition to the Middle East tensions, global oil consumption has remained strong. JPMorgan reported that global demand has averaged 105.2 million barrels per day (bpd) in the first half of July — up by 600,000 bpd from the same period last year and consistent with projections.
“Crude prices have been broadly stable this week, with no significant moves as the impact of OPEC+ supply increases has been offset by strong seasonal demand in the U.S.,” said Anh Pham, analyst at LSEG.
U.S. Energy Information Administration (EIA) data released Wednesday showed a larger-than-expected drop in crude stockpiles, driven by rising exports, reinforcing signs of a tightening market.
