OIL FUTURES: Prices edge higher following Iranian drone attack on Israel

Crude futures opened with a brief spike April 14 following news of an Iranian drone attack on Israel, but quickly slipped back to unchanged territory as the attacks were widely expected heading into the weekend.

NYMEX front-month crude rose 45 cents to $86.11/b, while ICE front-month Brent was up 60 cents at $91.05/b. However, the rally was short-lived and by 2230 GMT, NYMEX front-month crude was trading at $85.50/b, down 16 cents, while ICE Brent was trading at $90.33/b, down 12 cents.

Iran launched a barrage of drones at Israel, officials said April 13, in a significant escalation of tensions in the oil and gas rich Middle East, after earlier impounding an Israeli-linked cargo vessel near the Strait of Hormuz.

"A direct Iranian attack on Israel is very alarming, especially for the oil market," said Jim Burkhard, S&P Global Commodity Insights' head of crude oil, energy and mobility research. "The war is not about oil, but oil flows could be impacted in a major way. But it is too early to tell for sure."

The rally was short-lived as prices had already risen ahead of the weekend on an expected strike. NYMEX May WTI settled 64 cents higher at $85.66/b and ICE June Brent climbed 71 cents to settle at $90.45/b.

Also, the threat of supply disruptions has been helping to fuel a rise in crude prices since mid-March, when NYMEX crude was trading around $77/b.