Oil prices bound for second weekly gain on geopolitical tension, supply concerns [Video]

Oil prices extended gains on Friday and headed for a second weekly gain, supported by geopolitical tensions in Europe and the Middle East, concerns over tightening supply, and optimism about global fuel demand growth as economies improve.

Brent crude climbed 49 cents, or 0.5%, to $91.14 a barrel by 0108 GMT. U.S. West Texas Intermediate crude was at $86.96 a barrel, up 37 cents, or 0.4%.

Both benchmarks settled at their highest since October on Thursday.

“Oil prices look set for further upside in the short term as a more positive economic backdrop is joined by ongoing supply tightness and rising geopolitical risks,” ANZ analysts Daniel Hynes and Soni Kumari said in a note, as the bank raised its 3-month price target for Brent to $95 a barrel.

Brent and WTI are set to notch a more than 4% gain this week, climbing for a second straight week, after third-largest OPEC producer Iran vowed revenge against Israel …