Oil prices fell after breaking $100; weekly jump about 9%

Oil prices fell after breaking $100; weekly jump about 9%

🔸 On Friday, oil prices, after several consecutive days of gains, dipped slightly, but overall the week saw a sharp rally, with prices remaining above the $100 per barrel mark.

🔸 Brent crude ended trading down 2.8% at $104.61, and West Texas Intermediate crude fell 2.4% to $100.05. Despite these declines, Brent rose 8.7% over the week, and U.S. oil climbed 9.4%.

🔸 Brent crude on Friday rose to near $110, its highest level since May; however, it then pulled back after the International Energy Agency, citing intensifying fighting in the Middle East and a renewed increase in energy prices, lowered its forecast for global oil demand for this year.

🔸 Reports about Iran’s plan to hold talks with Gulf states in Oman regarding the Strait of Hormuz also increased hopes for diplomatic developments.

🔸 However, concerns about the war dragging on, disruption in the Strait of Hormuz, and the Houthis’ consolidation of their position in the Bab el-Mandeb Strait—an essential shipping route between Asia and Europe—are still putting pressure on the market.

🔸 The current level of oil prices is still considered very high for central banks that are worried about stabilizing inflationary pressures in the economy.

🔸 The average price of diesel in the United States also surpassed $6 per gallon for the first time on Friday; an increase that could raise transportation and agricultural costs.