Supervisor Elham AbolFateh
Editor in Chief Mohamed Wadie

Oil Prices Head to Steepest Weekly Decline in Three Months

Fri 03 May 2024 | 11:49 PM
Taarek Refaat

Oil prices witnessed a slight rise today, Friday, amid possibilities that the OPEC+ coalition will maintain production cuts, but the two main crude oil prices are heading to record 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 rose 24 cents to $83.91 a barrel. US West Texas Intermediate crude for June delivery rose 19 cents to $79.19 a barrel.

Latest Oil Prices

WTI CRUDE                    $78.04     -1.15%

BRENT CRUDE               $82.86    -0.97%

MURBAN CRUDE           $83.29    -0.81%

NATURAL GAS                   $2.155   +5.90%

LOUISIANA LIGHT         $84.39    +0.17%

BONNY LIGHT                $84.86    -0.67%

OPEC BASKET                   $84.23    -3.37%

MARS US                        $77.26     -1.92%

GASOLINE                        $2.550    -1.81%

But both crude oil prices are on track to record weekly losses, amid investors' concern that interest rates remaining high for a longer period in the United States, the world's largest oil consumer, will curb growth in it and in other regions of the world, according to Reuters.

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The impact of geopolitical risks from the Gaza war, which kept prices high due to concerns about its impact on supplies, is also diminishing, with Israel and Hamas discussing a truce and holding talks with international mediators.

Brent is heading towards a weekly decline of 6.3%, while WTI is heading towards a loss of 5.6% per week.

The decline comes weeks before the next meeting of the Organization of the Petroleum Exporting Countries (OPEC) and its Russia-led allies within the bloc known as OPEC+.

Three sources from OPEC+ producers said the bloc may extend its voluntary oil production cuts of 2.2 million barrels per day beyond June if oil demand does not rise, but the bloc has not yet begun formal talks before a meeting scheduled for June 1.

The market is now awaiting economic data from the United States, as the Bureau of Labor Statistics will release the monthly non-farm payrolls report on Friday, which is a measure of the strength of the labor market in the country and is taken into account by the Federal Reserve when setting interest rates.

High interest rates usually affect the economy and can reduce demand for oil.