Oil retreats heading to end the week steady

Oil prices fell on Friday in light of the possibility of soon reaching a ceasefire agreement in Gaza, which could lead to easing geopolitical tension in the Middle East, while the rise of the dollar and the decline in demand for gasoline in the United States also led to pressure on prices.

According to Reuters, Brent crude futures fell 53 cents, or 0.6%, to $85.25 per barrel by 06:51 (GMT). US West Texas Intermediate crude futures fell 52 cents, or 0.6%, to $80.55 per barrel.

Both crude contracts are heading to end the week stable or with a slight decline after rising more than 3% last week.

IG analyst Tony Sycamore said that the decline in oil came amid reports of a draft United Nations resolution calling for a ceasefire in Gaza, and with the start of another round of profit-taking.

He added, “The ceasefire will help allay fears that the situation in Gaza may spread on a larger scale in the region.”

He continued, “In addition, this may encourage the Houthis to stop and allow oil tankers to pass through the Red Sea, which would also be a positive development in terms of helping to balance the dynamics of supply and demand.”