Oil set for weekly gains despite US waiver on Russian oil
Oil prices were on track for weekly gains on Friday, despite efforts by the U.S. to ease supply concerns by issuing a 30-day license allowing countries to purchase Russian oil and petroleum products currently stranded at sea.
Brent crude futures for May rose $1.02, or 1%, to $101.48 a barrel by 0730 GMT, putting the benchmark on course for a weekly increase of nearly 10%, News.Az reports, citing Bloomberg.
U.S. West Texas Intermediate (WTI) crude for April climbed 94 cents, or 1%, to $96.67 a barrel, set for a weekly rise of more than 6%.
The license was issued in what U.S. Treasury Secretary Scott Bessent described as an effort to stabilize global energy markets shaken by the U.S.-Israeli war on Iran. However, analysts said the move has not addressed broader supply constraints.
The announcement regarding Russian oil came a day after the U.S. Energy Department said it would release 172 million barrels from the Strategic Petroleum Reserve to help curb soaring oil prices.
The plan is part of a coordinated effort with the International Energy Agency, whose member countries have agreed to release a record 400 million barrels of oil from strategic stockpiles, including the U.S. contribution.
Both benchmark prices jumped more than 9% on Thursday and reached their highest levels since August 2022.
Meanwhile, Iran’s new supreme leader Mojtaba Khamenei said the country would continue fighting and would keep the Strait of Hormuz closed as leverage against the United States and Israel.
Security tensions in the region have also intensified. Iraqi security officials said two fuel tankers in Iraqi waters were struck by Iranian boats carrying explosives. An Iraqi official later told state media that the country’s oil ports had completely halted operations.
At the same time, Bessent told Sky News that the U.S. Navy — potentially alongside an international coalition — could escort vessels through the Strait of Hormuz once it becomes militarily feasible.
By Nijat Babayev
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