WTI crude futures surged by over 2% to $73 per barrel on Friday amid escalating tensions in the Middle East. U.S. Secretary of State Antony Blinken is preparing to visit the region with the goal of preventing the further spread of conflict. The benchmark is on track to end the first week of the year higher, despite a 2.3% decline on Thursday after official data showed that US gasoline inventories jumped by 10.9 million barrels last week, the largest week-on-week increase in more than three decades. Distillate stockpiles also rose by 10.1 million barrels, crushing estimates for a 400,000 barrel build, while crude inventories fell by 5.5 million barrels. Traders continued to monitor developments in Libya where protests halted production from the Sharara and El-Feel fields, which jointly contribute around 365,000 barrels per day. Elsewhere, Iran faced tragedy with two explosions at a ceremony honoring the late commander Soleimani, resulting in nearly 100 fatalities and numerous injuries.
