On Friday, Brent crude futures decreased by 21 cents to $95.24 a barrel, while U.S. West Texas Intermediate crude fell by 10 cents to $92.94 a barrel. This follows a significant drop in prices earlier in the week, with both contracts poised for their first weekly gain in three weeks, driven by a more than 6% increase in WTI.
The ongoing conflict in the Middle East, particularly Hezbollah's dismissal of a ceasefire agreement, has raised concerns about oil supply disruptions, especially through the Strait of Hormuz, a critical passage for global oil transport. Analysts have noted that falling global oil inventories could lead to price spikes in the upcoming quarter.
OPEC maintains its demand growth forecast at 1.2 million barrels per day for the year, despite the geopolitical tensions. Additionally, Iranian oil exports have plummeted to their lowest in six years due to U.S. sanctions, compounded by weak demand from China, which has further pressured oil prices