On Friday, oil prices saw a modest rise, with Brent futures increasing by 17 cents to $72.10 a barrel and West Texas Intermediate up by 14 cents to $68.83 a barrel. This uptick comes ahead of the U.S. Independence Day holiday, amidst a backdrop of cautious optimism regarding peace negotiations in the Middle East.
Despite this positive sentiment, both Brent and WTI benchmarks recorded their lowest levels since the onset of the U.S.-Israeli conflict in late February, with Brent down 0.02% and WTI up 0.12% for the week, marking minimal fluctuations.
Tim Waterer, chief market analyst at KCM Trade, noted that while the market is hopeful about the peace efforts, it remains hesitant until tangible evidence emerges. Additionally, production levels are adjusting, with Kuwait's oil output significantly increasing to 1.65 million barrels per day in June from 580,000 bpd in May, following an interim peace agreement.
Furthermore, at least five supertankers carrying 10 million barrels of Saudi oil have departed the Strait of Hormuz, as Saudi Aramco shifts to spot pricing to expedite sales in Asia. The reopening of this strategic waterway, which previously accounted for a substantial portion of global oil and LNG supply, could further impact market dynamics