Oil heads for a third week of decline as Middle East conflict ‎fears recede

Oil prices rose slightly on Friday, but they are heading for a decline for the third week as fears of supply disruptions due to the conflict between Israel and the Palestinians recede, making concerns about demand impose themselves again.

According to Reuters, by 0550 GMT, Brent crude futures for January delivery rose 41 cents, equivalent to 0.5%, to $80.42 per barrel. West Texas Intermediate crude futures for December delivery reached $76.06 per barrel, an increase of 32 cents, or 0.4%.

Brent crude futures fell 5.7% this week, while West Texas Intermediate crude fell 5.9% since last week. The three weeks of declines are the longest series of weekly losses for both crude oils since a four-week decline from mid-April to early May.

“The risk of supply disruption from the Middle East continues to decline,” research firm ANZ said in a note on Friday.

Weak Chinese economic data this week increased concerns about faltering demand. Moreover, refineries (TADAWUL:2030) in China, the largest buyer of crude oil, ordered smaller supplies from Saudi Arabia, the world’s largest oil exporter, for December.

However, analysts at Citi said in a note on Thursday that they expect prices to recover after falling to their lowest levels since July earlier this week.

Citi said, “We expect prices to consolidate, and we maintain our price expectations in the near term, with the support expected to come from the completion of maintenance on some refineries and the shift in risk for investors after the recent sales.”