Oil prices fluctuated in a highly volatile market during the week ending March 25, with international benchmark Brent hitting over $123 a barrel on Thursday on the back of ongoing supply fears.
Brent crude traded at $115.49 per barrel at 1221 GMT on Friday, posting a 7.43% gain from the Monday session that opened at $107.50 a barrel.
American benchmark West Texas Intermediate (WTI) registered at $109 per barrel at the same time on Friday, increasing 3.68% relative to the opening price of $105.13 a barrel on Monday.
Oil prices started the week with a rapid increase, with Brent crude recording an 8.7% daily rise to $116.80 a barrel in Monday’s trade amid persistent supply concerns over the lack of progress in Russia-Ukraine talks and the risk of sanctions on the Russian oil industry by EU countries.
Reports that EU countries are considering further embargoes, including sanctions on Russian oil exports, came amid lingering talks between Ukrainian and Russian officials, which to date failed to make progress on key concessions.
Meanwhile, Kremlin officials also warned of serious repercussions if an embargo is imposed on its oil exports. Russian Deputy Prime Minister Alexander Novak advised that oil prices could rise to $300 per barrel or even $500 per barrel if EU countries choose to ban Russian oil exports.
However, not all EU countries supported this move, as Germany and the Netherlands said on Monday that the EU is dependent on Russian oil and gas and cannot wean itself off oil from Russian resources at this time.
Oil prices continued to rise on escalating investor jitters over supply shortages due to an attack on Saudi oil facilities.
The Saudi-led coalition said Houthi rebel drones targeted a water desalination plant in Al-Shaqeeq, a facility run by Aramco in Jazan, a power station in the southern Dhahran al Janub city, a gas station in Khamis Mushait, and an Aramco plant in Yanbu.
Saudi Arabia said it would not take any responsibility for global oil supply shortages in light of the attacks on its oil facilities from Iranian-backed Houthis in Yemen.
Later on Tuesday, the price of Brent oil hit $120 a barrel over reports that Russian and Kazakhstan oil exports via the Caspian Pipeline Consortium (CPC) from the Black Sea would be halted for one and a half months.
Brent price hikes were further supported after Russian President Vladimir Putin said he instructed the government to transfer into rubles payments for Russia's energy resources coming from 'unfriendly countries.'
Meanwhile, US National Security Advisor Jake Sullivan said on Wednesday that during his talks in Europe, President Joe Biden 'will announce the new economic penalties as part of a coordinated action with US partners.'
New sanctions concerns ahead of Biden's departure to Europe to attend a NATO summit, an EU leaders' meeting as well as the G7 summit pushed Brent up to $123.74 per barrel.
In retaliation, Russia said on Thursday that it is considering local currencies or Bitcoin as payment for its oil and gas exports.
However, oil prices dropped late Thursday over market relief that news of EU sanctions would exclude the Russian oil sector.
Moreover, CPC on Thursday said the pipeline would partially resume oil loadings following a successful inspection.
Prices eased further on Friday when the US energy secretary, Jennifer Granholm, spoke of the possibility of releasing more oil from emergency reserves.
By Firdevs Yuksel
Anadolu Agency
energy@aa.com.tr