Oil prices rise 1% as supply risks remain in focus

Oil prices rose over 1% on Friday on short-covering ahead of a three-day holiday weekend and lingering worries over supply risks despite the receding likelihood of a U.S. military strike against Iran.

Brent crude was up 72 cents, or 1.13%, to $64.48 a barrel at 10:49 a.m. CDT (1649 GMT), on course for a fourth consecutive weekly gain. U.S. West Texas Intermediate was up 59 cents, or 1%, to $59.78 a barrel.

Brent was up a little more than $1 at its intraday peak as investors continue to weigh the potential for supply outages should tensions in the Middle East escalate.

Weighing against those fears are potential supply increases from Venezuela, said Phil Flynn, senior analyst with Price Futures Group.

"Downward pressure is coming from Venezuela barrels coming on the market," Flynn said. "Upward pressure is coming from Iran and what may happen there. Those are the two main issues. Three-day weekends are always a time of great surprises."

Both benchmarks hit multi-month highs this week after protests flared up in Iran and U.S. President Donald Trump signalled the potential for military strikes, but lost over 4% on Thursday as Trump said Tehran's crackdown on the protesters was easing, allaying concerns of possible military action that could disrupt oil supplies.