LONDON (Dispatches) - Oil rose above $113 a barrel on Friday in a volatile session as fears over disruption to Russian oil exports in the face of the prospect of more Iranian supplies.
Signs of an escalation in the Russia-Ukraine conflict, with reports of a fire at a Ukrainian nuclear power plant, spooked markets before authorities said the fire in a building identified as a training centre had been extinguished.
Brent crude rose as high as $114.23 a barrel and by 1300 GMT was up $3.28, or 3%, at $113.74. U.S. West Texas Intermediate (WTI) added $3.19, or 3%, to $110.86 after touching a high of $112.84.
“Russia’s operation in Ukraine means that fears over supply will remain front and centre,” said Stephen Brennock of oil broker PVM.
Crude oil hit its highest in a decade this week and prices are set to post their strongest weekly gains since the middle of 2020, with the U.S. benchmark up more than 20% and Brent 17%.
On Thursday prices swung in a $10 range but settled lower for the first time in four sessions as investors focused on the revival of the Iran nuclear deal, which is expected to boost Iranian oil exports and ease tight supplies.
Oil prices are rising on fears that Western sanctions over the Ukraine conflict will disrupt shipments from Russia, the world’s biggest exporter of crude and oil products combined.