Oil up over rising supply concerns due to ongoing Mideast conflicts

By Basak Erkalan

Oil prices rose on Friday following growing global supply concerns triggered by ongoing conflicts in the Mideast and the Russia-Ukraine war.

International benchmark Brent crude traded at $85.77 per barrel at 10.36 a.m. local time (0736GMT), up 0.60% from the closing price of $85.26 per barrel in the previous trading session.

American benchmark West Texas Intermediate (WTI) traded at $82.27 per barrel, a 0.64% rise from the previous session that closed at $81.74 per barrel.

Israel has been attacking the Gaza Strip since last October, and continues to clash with Lebanon's Hezbollah on its northern border. These tensions support prices upward by raising concerns that ongoing tension in the region, where most global oil reserves are located, may lead to disruptions in global supply.

In addition, as the Russia-Ukraine war nears the middle of its thrid year, ongoing tensions in the region continue to increase supply concerns in the market.

The town of Selydove near the front line of Pokrovsk in Ukraine's Donetsk region was hit today by FAB-500 Russian guided missiles, leaving six people injured.

The possibility that a retaliatory attack from Ukraine on Russia, which accounts for about 8% of the global supply, will target the country's crude oil and refined products and reduce Russia's export capacity, is fueling supply concerns and contributing to the rise in prices.​​​​​​​