Oil prices rose slightly on Friday and remained on track for a fourth weekly gain on worries that global supplies will drop significantly, once U.S. sanctions target Iran’s petroleum industry from next month.
Benchmark Brent crude was up 0.1 percent at $84.67 a barrel and remained on course for a gain of about 2.5 percent for the week. U.S. light crude futures were up 0.39 percent at $74.63, a gain of over 2 percent for the week.
U.S. crude futures fell as much as 3 percent on Thursday and Brent crude prices gave up nearly 2 percent following a rise in U.S. oil inventories and after reports that Russia and Saudi Arabia have struck a private deal to raise oil production from September through December.
The U.S. wants all oil imports from Iran to end by November, but there is still uncertainty on the size of supply losses.
Many analysts expect Iranian exports to drop by about 1-million barrels per day in the month.
At the same time, concerns remain that higher Saudi and Russian output may not ease a supply crunch.