Oil Prices Heading for Biggest Weekly Loss since Early November

Oil prices are headed for their biggest weekly loss since early November as negotiations progress to reach an agreement to stop the war between Israel and Hamas in what could be a decisive step towards ending the conflict.

WTI rose above $74 a barrel on Friday, but remained down nearly 5% for the week. Brent was also on its way to a weekly decline. People familiar with the matter said that talks on a ceasefire are still in their early stages, and a breakthrough is not expected in the coming days.

Oil Futures

Nymex $214 / gallon -2.22%

Brent $77.37 -1.69%

WTI  $72.35 -1.47%

Oil capped its monthly advance in January, following attacks on commercial ships in the Red Sea, but strong supply and concerns about demand from key consumers kept prices from rising significantly. The OPEC+ alliance indicated yesterday, Thursday, that it will adhere to production cuts this quarter.

OPEC reduced its daily oil production by 490,000 barrels last month, as the producer group and its allies embarked on a new effort to prevent a global glut and rising prices, according to a Bloomberg survey.