Oil Hits 7-Year High on Supply Worries

Oil prices reached their highest level in seven years on Friday as geopolitical tensions and a winter storm in the United States fueled concerns about supply disruptions.

Brent crude rose $1.32, or 1.5 percent, to $92.43 a barrel by 1120 GMT, after earlier touching its highest level since October 2014, recording $92.66.

West Texas Intermediate crude rose $1.45, or 1.6 percent, to $91.72 a barrel, after it also rose to a seven-year high of $91.91.

The two indices are on their way to gain for the seventh consecutive week.

On Thursday, a severe winter storm swept the central and northeastern United States, knocking out power for thousands.

Oil prices also rose as a result of the tension related to the Ukraine crisis, which has fueled concerns about already limited oil supplies.

“The recovery in oil prices was also supported by the emergence of new indications that OPEC is facing some difficulty in increasing production,” said Stephen Brennock of BVM brokerage in the oil markets.

The Organization of the Petroleum Exporting Countries and its allies, led by Russia, had agreed this week to commit to pumping moderate increases in production in the range of 400,000 barrels per day, at a time when the group known as (OPEC +) is already facing difficulty in achieving the current goals despite the pressure of major consumers to raise production more quickly. .

Data announced by the Iraqi Oil Marketing Company (SOMO) on Thursday showed that Iraq, which is the second largest oil producer in OPEC, pumped 4.16 million barrels per day in January, which is less than the level of 4.28 million barrels per day agreed upon by the OPEC + group.