Oil on A Path for A Weekly Gain

Brent crude was up 40 cents, or 0.3%, at $123.47 a barrel at 0934 GMT, while U.S. West Texas Intermediate crude rose 30 cents, or 0.3%, to $121.81 a barrel.

Prices overall rallied in the past two months; however, Brent was on track for a fourth consecutively weekly gain, and WTI should have a seventh straight weekly increase.

Oil prices also found support from fears of a potential disruption in supply in Europe.

Norway’s oil output could drop if workers go on strike on Sunday, the Norwegian Oil and Gas Association (NOG) said.

Some 845 of roughly 7,500 employees on offshore platforms plan to strike from June 12 if annual pay negotiations with employers fail.

The prospect of reaching a nuclear deal with Iran and lifting U.S. sanctions on the Iranian energy sector also seemed to be receding; supporting the oil rally.

Oil Prices Dropping

Iran on Thursday dealt a near-fatal blow to chances of reviving the nuclear deal as it removed essentially all the International Atomic Energy Agency monitoring equipment installed under the agreement, IAEA chief Rafael Grossi said.

“A strategic détente between the United States and Iran would allow 1 million barrels per day of Iranian crude oil exports to return to global markets and would therefore provide some relief to global oil prices,” analysts at BCA Research said.

Oil prices fell more than $1 earlier in the session amid fresh lockdowns in China.

Shanghai and Beijing went back on COVID alert on Thursday. Parts of Shanghai imposed new lockdown restrictions, and the city announced a round of mass testing for millions of residents.