On Friday, oil futures experienced a decline, continuing a pattern of correction following a peak at four-month highs driven by geopolitical tensions.
The price for May delivery of West Texas Intermediate (WTI) oil decreased by 0.54%, settling at $80.63 per barrel on the New York Mercantile Exchange.
Concurrently, Brent crude for June delivery saw a reduction of 0.48%, closing at $84.83 per barrel on the Intercontinental Exchange.
Despite these daily losses, the Brent crude contract for May showed a marginal weekly gain of 0.11%.
This marks the third consecutive day of declining oil prices, influenced by the strengthening of the US dollar.
Additionally, global geopolitical developments, including discussions surrounding a ceasefire in the Gaza Strip, have impacted market sentiment.
Notably, a resolution proposing an immediate ceasefire in Gaza was vetoed by China and Russia in the Security Council.
Netanyahu declares intent to invade Rafah despite lack of US support, marking a significant move.
Analysts at Capital Economics have observed that oil prices received support earlier in the week due to Ukraine’s assaults on Russian refineries.
However, advice from the US to Ukraine to halt these attacks may have restrained further price increases.
The uncertain future of hostilities could decrease prices; Russian oil exports may rise during refinery maintenance.
Santander US Chief Economist notes India’s move to avoid US sanctions by halting direct Russian oil imports.
Stanley highlights US discouragement of Ukraine targeting Russian oil infrastructure, fearing price escalation and retaliatory measures.
Stanley expressed skepticism regarding the US’s readiness to intensify its stance against Russia, illustrating the intricate relationship between geopolitical developments and oil market dynamics.