Oil futures ended trading on Friday with a decrease and recorded the biggest weekly drop since 2022 amid expectations of negotiations between the United States and Iran on a possible long-term ceasefire.
This was reported by the portal of the international agency Reuters.
Oil prices remained near USD 100 per barrel due to ongoing attacks and limited shipping through the Strait of Hormuz. Additional pressure on the market was created by concerns about possible supply disruptions from Saudi Arabia, while in the physical market quotes reached record levels.
"The key question for the oil market is whether shipping through the Strait of Hormuz will resume. There are no signs of this yet. If supplies from the Persian Gulf remain blocked, prices could rise again," Commerzbank analysts said.
Brent futures fell 72 cents, or 0.8%, to USD 95.20 a barrel. The weekly drop was 12.7%, the worst since August 2022. The sharp decline was exacerbated by a midweek collapse on reports of a temporary ceasefire between Iran and the United States brokered by Pakistan.
US WTI crude lost USD 1.30, or 1.3%, to trade at USD 96.57 a barrel. It fell 13.4% for the week, its biggest drop since April 2020.
Despite this, the market partially stabilized at the end of the week. Investors were weighing a cut in Saudi output and diplomatic signals from the US and Iran.
Saudi Arabia said it had cut production by about 600,000 barrels per day due to attacks on its energy infrastructure. The East-West pipeline also cut capacity by about 700,000 barrels per day.
Meanwhile, the US is considering further easing of sanctions, which could allow some countries to increase purchases of russian oil.
US energy companies also cut the number of rigs they have rigged for the third time in four weeks, signaling a slowdown in activity in the industry.
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