Oil prices are heading for a weekly drop of around 12% as markets expect tensions surrounding the war with Iran to ease following major election losses for US President Donald Trump’s party. However, concerns about oil supplies from the Middle East continue to keep markets on edge.
On Friday, Brent crude futures for January delivery rose $1.57, or 1.6%, to $99.86 a barrel. US West Texas Intermediate (WTI) crude also gained $1.10, or 1.22%, reaching $91.62 a barrel. Both benchmarks recorded gains for the second day in a row.
Despite these gains, Brent is still on track for a weekly loss of around 12%. WTI is also expected to fall by roughly the same amount after several days of heavy selling in the oil market.
The recent decline followed the results of the US midterm congressional elections, where Democrats made gains at the expense of Republicans. The results raised hopes that political pressure could help ease the US-Israeli war against Iran, which has now entered its ninth month.
Oil prices dropped nearly 8% on Wednesday alone, reaching their lowest level in two months as traders became more confident that tensions in the region could begin to ease.