Oil Futures Settled Higher to $86.06 a Barrel, Gaining 5.4% in the Week

Oil futures settled higher, boosted by supply constraints and worries of a Russian attack on neighboring Ukraine, pushing prices toward their fourth weekly gain despite sources saying China is set to release crude reserves around the Lunar New Year.

Brent crude futures settled $1.59, or 1.9%, to $86.06 a barrel, gaining 5.4% in the week.

U.S. West Texas Intermediate crude gained $1.70, or 2.1%, to $83.82 per barrel, rising 6.3% in the week.

U.S. officials voiced fears on Friday that Russia was preparing to attack Ukraine if diplomacy failed. Russia, which has massed 100,000 troops on Ukraine’s border, released pictures of its forces on the move

China will release crude oil from its national strategic stockpiles as part of a plan coordinated by the United States with other major consumers to reduce global prices, according to Reuters.

China agreed to release a relatively bigger amount if oil is above $85 a barrel, and a smaller volume if oil stays near the $75 level.

The release of crude stocks will occur around Lunar New Year, which falls on February 1.

Meanwhile, analysts said that there has been a bump up in the geopolitical risk factor that is boosting prices as tensions mounted between Russia and Ukraine.

Several banks have also forecast oil prices of $100 a barrel this year, with demand expected to outstrip supply, not least as capacity constraints among OPEC and allied producing countries come into focus.