Daily Times

Oil futures headed higher for the second straight day on Friday due to tension in the Middle East despite hand-wringing around the spread of the coronavirus delta variant and its potential impact on energy demand.

At 1215 hours GMT, Brent, the international benchmark for two-thirds of the world’s oil, gained $0.85 (+1.19 percent) to reach $72.14 a barrel. Similarly, the US West Texas Intermediate (WTI) reached $69.88, up by $0.79 (+1.14 percent). The price for Opec Basket was recorded at $71.83 a barrel with 1.21 percent decrease, Arab Light was available at $72.67 a barrel with 2.63 percent increase, while the price of Russian Sokol jumped to $71.90 after gaining 2.42 percent.

The latest surge in crude oil prices is based on emerging conflict in the Middle East, which could ultimately impinge upon supplies if it worsens. Growing tensions between Israel and Lebanon have been reported. Israeli aircraft struck what its military said were rocket launch sites in south Lebanon early on Thursday in response to earlier projectile fire towards Israel from Lebanese territory. Two rockets launched from Lebanon on Wednesday struck Israel, which initially responded with artillery fire amid heightened regional tensions over an alleged Iranian attack on an oil tanker in the Gulf last week.

The exchange came after an attack last week that Israel blamed on Iran on a tanker off the coast of Oman. Two crew members, a Briton and a Romanian, were killed. Iran denied any involvement.