Oil futures: Crude higher following US air strikes, Brent above $90/b

Quantum Commodity Intelligence – Crude oil futures Friday were higher on concerns of a wider regional conflict in the Middle East after US forces conducted strikes on two facilities in eastern Syria used by Iran's Islamic Revolutionary Guard.

Front-month Dec23 ICE Brent futures were trading at $90.21/b (1740 GMT), compared to the day's high of $90.24/b and Thursday's settle of $87.93/b, while the more-liquid Jan23 contract was trading at $88.94/b.

At the same time Dec23 NYMEX WTI was trading at $85.38/b versus Thursday's settle of $83.21/b.

However, markets were still heading for small weekly losses after retreating earlier in the week. Last Friday, Dec23 Brent closed at $92.16/b, while Nov23 WTI settled at $88.08/b.

Prices had initially consolidated at lower levels Friday but rebounded on confirmation that the US had launched strikes on two bases in eastern Syria, which it said are used by Iranian-backed groups.

"The risk of the conflict spreading and causing oil supply disruption will likely continue contributing to risk premia for oil for the time being," BMI said in a note.

US officials said the strikes were in response to a number of attacks against American personnel based in Iraq and Syria, which had been targeted in a slew of drone and missile strikes.

Pentagon spokesman Pat Ryder said US and coalition forces have been attacked at least a dozen times in Iraq and four times in Syria.

"We know that these groups are affiliated with Iran," Ryder said without elaborating.

Ryder also confirmed that "approximately 900 troops have subsequently deployed or are in the process of deploying" to the region.

On economic news, the ECB on Thursday left the key interest rates unchanged, following 10 consecutive rate increases. However, ECB President Christine Lagarde said that it was premature to talk about rate cuts and would not confirm rates had even peaked yet.