Ana sayfa » Oil prices fell on Friday but are on track for a fourth straight week of gains

Oil prices fell on Friday but are on track for a fourth straight week of gains

Oil rose this week on expectations of strong summer demand in the United States, the world's largest oil consumer

by BUNKERIST

Oil prices fell on Friday but are on track for a fourth straight week of gains, near their highest levels since late April on hopes of strong summer fuel demand and some supply concerns.

Brent crude futures, which have gained 7% in the past four weeks, were down 31 cents, or 0.4%, at $87.12 a barrel by 0656 GMT. WTI crude futures, which have gained 9% in the past four weeks, were down 18 cents, or 0.2%, at $83.70 by Wednesday’s close.

Trading was weak and there was no settlement for WTI as the U.S. market was closed on Thursday for the July 4 holiday.

Oil rose this week on expectations of strong summer demand in the United States, the world’s largest oil consumer. Market sentiment was supported this week by strong volatility indicators and intensifying geopolitical tensions in the Middle East.

The U.S. Energy Information Administration (EIA) reported a major 12.2 million barrel drop in inventories last week, ahead of analysts’ expectations of a 700,000 barrel drop.

U.S. data released on Wednesday showed that jobless claims rose last week and the number of unemployed rose as well. That could mean the Fed could accelerate rate cuts and support oil markets.

On the supply side, Russia’s oil producers Rosneft and Lukoil reported on Thursday that they will significantly reduce oil exports from the Black Sea port of Novorossiisk in July.

Meanwhile, Saudi Arabia’s Saudi Aramco cut the price of its flagship Arab Light crude, which it will sell to Asia in August, to $1.80 a barrel above the Oman/Dubai average, highlighting the pressure OPEC producers are facing as non-OPEC supplies rise.

Traders are also monitoring the war in Gaza and elections in France and the United Kingdom, analysts said.