According to UOB strategists Oil prices extended gains, with Brent crude settling above $96 and posting a strong weekly rise as disruptions to Middle East supply routes and renewed geopolitical tensions supported energy markets. Brent and WTI futures advanced further, with weekly gains approaching 8% and 10% respectively, while markets watch developments in the Strait of Hormuz.

Brent and WTI log strong week

“Oil prices also advanced, with Brent crude settling above US$96/bbl and notching a strong weekly gain, as ongoing disruptions to Middle East supply routes and renewed geopolitical tensions continued to support energy prices.”

“Oil prices gained more than 7% for the week after the US and Iran resumed military exchanges in the seventh month of their conflict, while US diesel prices hit a record high.”

“Brent crude futures gained 76 cents to close at $96.28/bbl, and West Texas Intermediate crude futures advanced 18 cents to settle at $91.48/bbl.”

“Brent was up nearly 8% for the week and WTI gained almost 10%.”

“Financial markets will be keeping a close watch on developments in the Middle East and the Strait of Hormuz, with any signs of further disruption to energy supplies likely to influence risk sentiment and oil prices.”