Crude oil and refined product futures prices were seeing a second day of solid increases Friday as escalating tensions in the Middle East had most contracts ending the week with gains.
U.S. crude prices were back above the $100/bbl mark at 11:15 a.m. ET, with the December West Texas Intermediate crude contract trading $2.81 higher to $102.28/bbl, a change of 2.8%.
January WTI prices were up by $2.76 to $100.28/bbl.
Brent crude prices were seeing similar proportional increases, with December Brent rising by $3.03 to $116.20/bbl and the January contract ahead by $2.68 to $111.34/bbl.
RBOB futures were leading products higher, with the November contract ahead by 4.15cts to $3.2180/gal, a gain of 1.4%. December prices were rising by 4.48cts to $3.1341/gal.
ULSD increases were under 0.5%, with the November contract moving up by 2.72cts to $4.9593/gal and December prices rising by 2.7cts to $4.7636/gal.
The gains come as tensions continue to increase in the Persian Gulf region, with the U.S. and Israel reportedly preparing to resume strikes on Iran and Iranian leaders threatening to retaliate by striking civilian targets in the region.
"The physical market is more balanced than the headlines suggest. Gulf oil exports have recovered significantly in recent weeks, which gives the market some protection, while emergency stock releases have also helped ease immediate supply fears," said Zaheer Anwari, founder of The Revacy Fund, in an analysis Friday. "That does not remove the risk. Shipping through the region remains disrupted, freight and insurance costs are still elevated and any fresh attack on energy infrastructure could quickly tighten supply again."
