Crude oil prices declined significantly, marking the largest weekly drop in over a year, driven by renewed U.S. efforts to resolve Middle East conflicts. WTI crude fell over 2%, settling at approximately $69 per barrel, while Brent crude closed at around $73 per barrel. WTI's weekly drop was 8.4%, the largest since October 2023.
The situation intensified after the Israeli military killed Hamas leader Yahya Sinwar, prompting U.S. President Joe Biden to call for a ceasefire in Gaza. However, Israeli Prime Minister Benjamin Netanyahu stated that operations were "not yet complete." Concerns about potential Israeli attacks on Iranian energy facilities subsided, resulting in initial sharp drops in oil prices on Monday and Tuesday. Despite small recoveries, prices did not regain earlier losses.
On Thursday, reports showed U.S. crude inventories fell for the fourth consecutive week, briefly halting the decline in prices. Looking ahead, the International Energy Agency (IEA) predicts a potential surplus in global oil supply next year. Earlier this week, OPEC cut its demand growth forecasts for oil for the third consecutive month for both this year and next.
