As talks to find a cease to the fighting between the Zionist entity in the Gaza Strip move forward, oil prices are on the verge of suffering their worst weekly drop since early November. This might be a significant step towards putting an end to the violence.
Although WTI was up over $74 a barrel on Friday, it was still down about 5% for the week. Brent was expected to see a weekly decrease as well.
According to those with knowledge of the situation, ceasefire negotiations are still in their early phases, and a breakthrough is not anticipated in the near future.
Following attacks on commercial ships in the Red Sea, oil saw a ceiling on its monthly increase in January. However, solid supply and apprehensions about demand from important users prevented prices from climbing further. The OPEC+ coalition said on Thursday that it will go through with the production restrictions for this quarter.
According to a Bloomberg poll, OPEC cut its daily oil output by 490,000 barrels last month as the producers’ club and its allies started a fresh initiative to stop a worldwide oversupply and increasing prices.
