Oil prices rose Friday, closing at their highest in weeks, as Ukrainian drone strikes on Russian energy assets cut fuel exports and U.S. allies faced fresh pressure from Washington to reduce Russian imports.
Brent crude settled at $70.13, up 71 cents (1.02%), while WTI closed at $65.72, gaining 74 cents (1.14%). Both benchmarks are on track for their strongest weekly performance since mid-June.
Ukraine’s strikes on Russian refineries and export terminals have begun to materially cut into Russia’s fuel availability, prompting Moscow to impose a partial diesel export ban through year-end and extend its gasoline ban. Several Russian regions are already reporting shortages. Analysts say this, coupled with renewed U.S. pressure on allies to curb Russian imports, is starting to inject a geopolitical risk premium back into crude.
At the same time, the market is weighing news that Kurdish oil exports via Turkey are scheduled to resume Saturday, potentially adding supply. But demand-side signals remain mixed: U.S. GDP was revised up to a 3.8% annualized gain last quarter, which supports demand expectations but could make the Fed more cautious about further rate cuts following last week’s initial quarter point move.
“The drone attacks are adding up, and if Russian flows to India and China are hit, they’ll be looking elsewhere for supply,” said John Kilduff of Again Capital.