Oil prices fall after double-digit weekly gains above $100
The decline snapped multi-day winning streaks for both Brent and WTI crude oil futures.
TL;DR
- Oil prices fell on Friday but were set for a weekly gain of almost 9%, exceeding $100 a barrel.
- Brent crude futures were down 2.4% to $105.03, and WTI traded 2.75% higher at $99.66.
- The price decline was influenced by reports of Iran meeting with Gulf states in Oman to discuss the Strait of Hormuz.
- Geopolitical fears, including concerns over Red Sea shipping and Saudi Arabia's oil output falling, are driving the market.
- Analysts question whether the current supply deficit is structural or temporary, noting that higher prices could reduce demand, especially with the growth of renewable energy.
- The long-term impact of renewable energy and potential supply increases suggests prices may not sustain current levels beyond 2026.