Oil prices continued their downward trend on Friday, marking the third consecutive session of losses. The decline is fueled by growing optimism surrounding potential peace negotiations in Ukraine, which has eased concerns about supply disruptions.
As of 09:22 Algerian time, West Texas Intermediate (WTI) crude futures for January delivery fell by 1.95% to $57.85 per barrel. Brent crude futures, also for January delivery, experienced a similar decrease, dropping by 1.69% to $62.31 per barrel.
Analysts predict that both WTI and Brent contracts are on track to decline by over 2.5% this week. This projected decrease stems from increasing anxieties about a potential surge in oil supply, which could negate the majority of last week’s gains.
The market remains sensitive to geopolitical developments and supply-demand dynamics. The prospect of a resolution to the conflict in Ukraine is seen as potentially stabilizing the global energy market, thus reducing the risk premium associated with oil prices.
However, concerns persist regarding the possibility of increased production from various oil-producing nations, which could further weigh on prices. Market watchers are closely monitoring output levels and inventory data to assess the overall balance of the market.
The coming days will be crucial in determining the trajectory of oil prices, with peace talks and supply-side developments remaining key factors influencing market sentiment.
