Brent crude futures: climbed more than 1.5% to almost $94 per barrel on Friday, after the International Energy Agency said if the persistent gap between OPEC+ output and its target levels continues, supply tensions will rise, increasing the likelihood of more volatility and upward pressure on prices.
Saudi Arabia and the United Arab Emirates were pointed as the OPEC members with spare capacity able to pump more crude. The Paris-based agency also said that demand for oil would rise by 3.2 million barrels a day this year, roughly 100,000 barrels a day less than it said it was expecting last month.
While Stocks moved sharply lower in afternoon trading after a jump in oil prices that appeared to be tied to increased tensions in Ukraine.
The U.K. has told British nationals to leave Ukraine immediately. A Downing Street spokesperson also said Prime Minister Boris Johnson feared for the “security of Europe in the current circumstances.”
The spokesperson added that Russian President Vladimir Putin “had to understand that there would be severe penalties that would be extremely damaging to Russia’s economy, and that Allies needed to continue with efforts to reinforce and support the Eastern frontiers of NATO.”
Still, the benchmark Brent crude is heading for its first weekly drop after rallying for seven straight weeks as diplomatic efforts raised the chance of reviving the Iran nuclear deal, paving the way for a resumption in official flows from the nation. Analysts suggested that Iran could add as much as 1.5 million barrels a day if an agreement is reached that allows sanctions to be lifted.