Oil price exceeds US $ 111 before the possibility of a nuclear agreement with Iran

The oil prices They rose above $111 a barrel on Friday in a volatile session as fears over disruption to Russian crude exports in the face of Western sanctions offset the prospect of more Iranian supplies in the event of a nuclear deal with Tehran.

Signs of an escalation in the conflict between Russia and Ukraine, with reports of a fire in a town where a Ukrainian nuclear power plant is located, spooked markets before authorities said the flames – in a building identified as a training center – had been extinguished.

At 10:30 GMT, Brent crude futures were trading up $1.4, or 1.24%, at $111.86. US West Texas Intermediate (WTI) oil futures were up $2.26, or 2.1%, at $109.02 a barrel, after hitting a high of $112.84.

“Russian invasion of Ukraine means supply fears will remain in the spotlight”, said Stephen Brennock, of the oil broker PVM, although he added that there are “a new sense of urgency from all parties involved” to revive the Iranian nuclear deal.

Crude oil hit its highest level in a decade this week and prices are set to post their biggest weekly gains since mid-2020, with the US benchmark rising more than 18% and Brent up 13%.

Prices oscillated in a $10 range on Thursday but closed lower for the first time in four sessions as investors focused on a possible revival of the Iran nuclear deal, which is expected to boost US exports. Iranian oil and ease supply shortages.

Oil prices are climbing on fears that Western sanctions over the Ukraine conflict will disrupt shipments from Russia, the world’s biggest exporter of crude and petroleum products combined.

Russian crude trading activity has slowed as traders hesitate to make sanctions purchases, while US President Joe Biden comes under increasing pressure to ban US imports of Russian oil.

With information from Reuters