2024-05-05 22:54:07
Oil prices witnessed a slight decline on Friday amid prospects that the OPEC+ alliance would maintain production cuts, and the two main crude oils headed for the largest weekly decline in three months under pressure from uncertainty related to demand and a decline in tension in the Middle East, which reduced the risks associated with supplies.
Brent crude futures for July delivery fell 32 cents to $83.35 a barrel by 14:33 GMT, and US West Texas Intermediate crude for June delivery fell 45 cents to $78.50 a barrel.
The two crude oil prices headed for weekly losses amid investors’ concern that interest rates remaining high for a longer period in the United States, the world’s largest oil consumer, would curb growth there and in other regions of the world. The impact of geopolitical risks from the Gaza war, which kept prices high due to concerns about its impact on supplies, is also fading, with Israel and Hamas discussing a truce and holding talks with international mediators.
Brent headed towards a weekly decline of 6.6 percent, while West Texas Intermediate crude headed towards a loss of 6 percent per week.
The decline comes weeks before the next meeting of the Organization of the Petroleum Exporting Countries (OPEC) and its allies led by Russia within the bloc known as “OPEC Plus.”
Three sources from OPEC Plus producers said that the bloc may extend its voluntary reductions in oil production by 2.2 million barrels per day beyond next June if demand for oil does not increase, but the bloc has not yet begun its official talks before a meeting scheduled for June 1.
On Friday, the market was awaiting data on the monthly report on US non-farm payrolls, which is a measure of the strength of the labor market in the country, and which the Federal Reserve (the US Central Bank) takes into account when setting interest rates. High interest rates usually affect the economy and can reduce demand for oil.
Last updated: May 4, 2024 – 19:21
Suggest a correction
2024-05-05 22:54:07