Oil prices increased during the week ending Jan. 19, following optimistic expectations about global oil demand, a fall in US commercial crude oil inventories and supply risks from the ongoing conflict in the Red Sea.
International benchmark Brent crude traded at $79.08 per barrel at 15.10 p.m. local time (1210 GMT) on Friday, increasing by over 1% relative to the closing price of $78.29 a barrel on Friday last week.
West Texas Intermediate (WTI), the American benchmark, traded at $73.89 a barrel at the same time on Friday, for a rise of around 1.7% from last Friday's session that closed at $72.68 per barrel.
The decrease in US stockpiles assuaged market concerns over falling demand.
Data released by the US Energy Information Administration (EIA) on Thursday showed that US commercial crude oil inventories decreased by around 2.5 million barrels to 429.9 million barrels, compared to the American Petroleum Institute's expectation of a rise of around 483,000 barrels.
Meanwhile, increased tension in the Red Sea put upward pressure on oil prices by raising fears that disruptions in the global supply chain due to delays in energy shipments would negatively impact supplies.
The possibility of global supply shortages grew when the Houthi group declared on Thursday that they had attacked a US vessel in the Gulf of Aden.
A Houthi military spokesman said the assault was in response to US and UK aggression against Yemen and also to pressure Israel to halt its deadly war on the Gaza Strip.
Following week-long airstrikes launched by the US and UK on Houthi targets in retaliation for the attacks, fears were raised of supply chain disruptions, which drove oil prices up.
The Red Sea is one of the world's most frequently used sea routes for oil and fuel shipments. It is used to transit fuel between Egypt's Suez Canal and the Gulf of Aden, allowing ships to avoid the much costlier and longer route around the southern coast of Africa.
By Duygu Alhan
Anadolu Agency
energy@aa.com.tr