US crude oil futures climbed more than 10 per cent on Friday, pulling closer to Brent as buyers sought available barrels, with Middle Eastern supply constrained by the effective closure of the Strait of Hormuz amid the expanding US-Israeli conflict with Iran.
Brent crude futures were up $5.42, or 6.35 per cent, at $90.83 a barrel at 10:37 CST (16:37 GMT). West Texas Intermediate crude (WTI) was up $7.81, or 9.81 per cent, at $88.96.
It was the second straight day that gains in US crude futures had outpaced those in the Brent contract.
“Refiners and trading houses are searching for alternative barrels, and the US is the largest producer,” said Giovanni Staunovo an analyst with UBS. “To prevent inventories in the US being reduced too quickly via too high exports, the spread is moving back to the transportation costs.”
Crude oil was set on Friday for its strongest weekly gain since the extreme volatility of the Covid-19 pandemic in spring 2020, as conflict in the Middle East kept shipping and energy exports through the vital Strait of Hormuz halted.