BEIJING (Reuters) – Oil prices edged higher for a second consecutive session on Friday but remained on track for a significant weekly decline, as hopes of de-escalation in the Iran war weighed on the market while renewed attacks on oil tankers in the Middle East raised concerns over supply disruptions.
Brent crude futures for January delivery rose by $1.57, or 1.6%, to $99.86 per barrel as of 0222 GMT. Meanwhile, US West Texas Intermediate (WTI) crude gained $1.10, or 1.22%, to $91.62 per barrel.
Despite the recent gains, Brent crude is set to record a weekly decline of around 12%, while WTI is expected to fall by 12.1%.
Oil prices plunged earlier this week amid expectations that the US congressional elections, which shifted control of both chambers to the Democrats, could pave the way for a de-escalation of the US-Israeli war against Iran, now in its ninth month.
Crude prices dropped nearly 8% on Wednesday, settling at their lowest levels in two months.
However, the market staged a recovery after a series of tanker attacks in the Gulf and the Strait of Hormuz on Wednesday and Thursday renewed concerns over disruptions to global oil supplies.
The Strait of Hormuz remains a critical shipping route for the majority of Middle Eastern oil exports.
Daniel Hynes, senior commodity strategist at ANZ, said oil prices rebounded as traders viewed Wednesday’s sell-off as excessive.
He noted that while prices had come under pressure following the election results, growing supply concerns had become more prominent during Thursday’s trading.
Hynes added that Iran continues to maintain control over the Strait of Hormuz and is unlikely to relinquish it, while oil flows through the strategic waterway remain below 60% of capacity.
