REUTERS
Oil prices are on the rise amid intensified fighting in Iraq and Libya, with traders also waiting for publication of weekly data on the number of drilling rigs operating in the United States and the outcome of negotiations on Iran's nuclear program, Reuters writes.
On Friday Brent futures have risen by $0.49 to $60.97 a barrel, while futures for WTI rose by $0.31 to $51.07.
Islamic State militants have set fire to oil wells in the northeast of Iraq to deter attacks by government troops, while Libya has stopped production on 11 fields due to violence between factions fighting for power.
On Friday, oil company Baker Hughes will publish weekly data on the number of oil rigs operating in the United States, which will help assess levels of shale oil production.
"Given the higher production cost for shale oil, we view that the supply-demand matrix will adjust itself accordingly to eventually lift oil prices to at least the estimated production cost," analysts at OCBC said in a note.
According to them, by the year end, the Brent price is to rise to $80 per barrel, and WTI up to $75, mainly owning to higher prices in the second year half.
Iran's foreign minister has made it clear that his country could accept a 10-year moratorium on certain aspects of its nuclear program, but refused to enter a detailed discussion of this topic.
According to market experts, the success of the negotiations on Iran’s nuclear program will have a bearing on future volumes of Iranian oil exports.