WEB DESK: Oil prices rose on Friday as Houthi attacks in Saudi Arabia heightened concerns over potential disruptions to energy supplies from the Middle East.
Brent crude futures gained 58 cents, or 0.5%, to reach $113.75 a barrel by 0439 GMT, while US West Texas Intermediate (WTI) crude advanced 66 cents, or 0.7%, to $100.13 a barrel.
Brent, which closed at its highest level since May 4 on Thursday, was on course to record its third consecutive weekly gain. WTI, however, was headed for a weekly decline after posting gains over the previous two weeks.
Saudi Aramco ordered the evacuation of its headquarters in Dhahran, near the Gulf coast and Bahrain, on Thursday, adding to concerns over the security of regional energy infrastructure.
ING analysts said in a note on Friday that markets were increasingly concerned about a fresh escalation in the Persian Gulf, which could threaten oil shipments that had so far remained relatively resilient.
They added that renewed hostilities appeared to be the most likely scenario, while even the possibility of further escalation was keeping a significant geopolitical risk premium in oil prices.
Linh Tran, an analyst at XS.com, said the scale of any actual supply disruption and the time required to restore affected operations would be crucial in determining the risk premium investors were prepared to pay.
Tran added that oil prices could remain elevated on a more sustained basis if continued attacks disrupted shipments and delayed deliveries.
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