Oil prices could soon rally above $90 a barrel amid growing concerns over the prospect of steep declines in Iranian crude, according to industry analysts.
Brent crude was on track to post a fourth week of declines in five on Friday, with the global oil benchmark poised to slip more than 1 percent amid continued volatility in the energy market.
Investors are seen weighing bullish factors that include potential supply disruptions to Iranian crude exports against more bearish indicators, such as a ramp-up in production by OPEC and its allied partners.
"Venezuela's ticking time bomb together with the return of Iran's oil industry to the sanctions era has all the makings for a major supply shock," Stephen Brennock, oil analyst at PVM Oil Associates, said in a research note published Friday.
"The rising tide of global supply outages will offer a lifeline to those of a bullish disposition. (And) the potential for another price spike cannot therefore be discounted," he added.