US crude oil is set for its first weekly decline in three weeks, pressured by the prospect of increased oil supply from Saudi Arabia. However, China's economic stimulus measures have limited the fall in oil prices.
As of the time of writing, West Texas Intermediate (WTI, Financial) futures, the benchmark for US crude prices, have dropped nearly 6% this week. Meanwhile, Brent crude, the global benchmark, has fallen close to 4%. Even the escalation of the Middle East conflict, including clashes between Israel and Hezbollah in Lebanon, hasn't prevented the decline in oil prices.
Dan Yergin, Vice Chairman of S&P Global, commented on Friday, "It's amazing to see that the war in the Middle East hasn't affected oil prices. This is because the conflict hasn't disrupted oil supplies." He added, "There is still over 5 million barrels per day of capacity shut down in the Middle East."
