Oil prices edged lower Friday, marking the second consecutive week of declines, as fading hopes for a swift resolution to the conflict in Ukraine tempered concerns over potential supply disruptions.
As of 09:35 Moscow time, West Texas Intermediate (WTI) crude futures for January delivery fell by 0.23% to $56.02 per barrel. Brent crude futures for February delivery also experienced a slight decrease, dropping by 0.15% to $59.73 per barrel.
On a weekly basis, Brent crude witnessed a decrease of 2.3%, while WTI crude experienced a more significant drop of 2.5%. This downward trend reflects a shift in market sentiment, with investors seemingly less concerned about the potential impact of geopolitical tensions on global oil supplies.
Analysts suggest that the market is currently pricing in a scenario where supply disruptions, previously feared due to the ongoing situation in Ukraine, are less likely to materialize. This, coupled with concerns about global economic growth, is contributing to the downward pressure on oil prices.
The situation remains fluid, and future price movements will likely depend on developments in Ukraine, as well as broader macroeconomic trends. However, the current market indicates a reduced level of anxiety regarding immediate supply shocks.
DZWatch will continue to monitor the situation closely and provide updates as they become available.
