Oil prices rise above five-month high amid Middle East escalation fears

Prices reach highest levels since April

Brent crude futures gained 1.2 percent to settle at $114.57 a barrel by late Friday afternoon. The benchmark earlier touched $115, marking its first rise above that mark since early May. US West Texas Intermediate crude also increased by 1.5 percent to reach $100.95 per barrel.

Saudi Aramco evacuates Dhahran headquarters

Saudi Aramco ordered the evacuation of its Dhahran headquarters on Thursday as fighting intensified between the exporter and Yemen-based Houthis. Reuters reported that the company moved staff away from the Gulf area near Bahrain due to security risks. Analysts note that volatile oil flows and high freight rates have left the global market undersupplied.

Market monitors potential supply disruption

Giovanni Staunovo of UBS stated that the market remains concerned about a potential escalation which could trigger renewed supply disruptions. He added that the extent of actual disruption and time needed to restore operations will determine the supply risk premium. The Brent benchmark is on track for a third consecutive weekly gain of 4.2 percent.