Oil Ends The Week Lower As Hopes For Ceasefire Fade

Meanwhile, fears of elevated Russian hostility heat up: File Image/Pixabay

Oil on Friday continued its losing streak as traders realized the success of a United Nations ceasefire call between Israel and Hamas was unlikely, although some analysts said the focus over the next few days would remain on geopolitical developments.

John Kilduff, founding partner at Again Capital, theorized that a ceasefire would also end Houthi attacks on oil tankers in the Red Sea; he said, "Everyone is watching for what the weekend will bring with Gaza."

Brent settled down 35 cents at $85.43 per barrel, and West Texas Intermediate settled down 44 cents at $80.63 per barrel, with benchmarks achieving below a 1 percent change on the week.

Other analysts expressed concerns about potentially higher oil prices due to the Russia/Ukraine war, the latest development of which saw a series of Russian air strikes damaged energy facilities in Ukraine, leaving over 1 million people without power.

According to sources familiar with the matter, Washington was concerned that such strikes could result in retaliatory attacks on Western energy infrastructure.

Despite fluctuations in crude trading this week, the overall mood among insiders remained bullish – and this was reportedly evident at the annual CERAWeek by S&P Global conference in Houston.

Speakers at the event pointed out that global oil demand is surpassing expectations in the face of declining U.S. inventories, the extended output cuts from the Organization of the Petroleum Exporting Countries (OPEC), and the Ukraine/Russia hostilities.

In other oil news on Friday, Kpler data revealed that China is on track to buy a record volume of Russian crude this month: Chinese refiners will receive 1.7 million barrels per day of Sokol grade that was rerouted from its original intended destination of India.