Oil closes higher and records the biggest week of gains since July

UNITED STATES (OBSERVATORY) –¬†Oil prices rose on Friday, marking their biggest weekly gain since July last year amid support for fears about possible Western military action in Syria and reports of a decline in global crude stocks.

The threat of military action in Syria, which could lead to a confrontation with Russia, raises concerns about a disruption of crude supplies from the Middle East, but there is no sign of an impending US-led attack.

Analysts said that under this threat, dealers in the oil market to increase their positions before the weekend.

Brent crude for the day closed at 56 cents, or 0.78 percent, to settle at $ 72.58 a barrel, ending the week with gains of around $ 5 or 8 percent.

US benchmark WTI crude was up 32 cents, or 0.48 percent, to close at $ 67.39 a barrel, ending the week with an 8 percent gain.

On Wednesday, the benchmark crude oil prices hit their highest levels since late 2014 after US President Donald Trump warned that “incoming” missiles were in response to an alleged gas attack in Syria and after Saudi Arabia said it had intercepted rockets over Riyadh.

But Trump said in a tweet on Thursday that the attack on Syria “may be very close and may not be.”

The Organization of the Petroleum Exporting Countries (OPEC) said on Thursday that the surplus of global oil inventories is nearing fading, and the total production of the Organization fell by 201 thousand barrels per day to 31.96 million barrels per day in March of February.

OPEC Secretary-General Mohammed Barkindo told Reuters the organization and its oil-producing allies were preparing to extend their agreement to cut output to 2019, as a global oil guideline is expected to dissipate by September.