Oil prices fell on Friday but were stable for the week, with the possibility of a ceasefire in Gaza weakening oil indices, while the war in Europe and the reduction in the number of oil drilling platforms in the United States United made up for the fall.
Brent futures for May delivery closed at $85.43, down 35 cents. US crude oil closed at $80.63 a barrel, down 44 cents. Both indices had a weekly variation of less than 1%.
“Everyone is watching what the weekend will bring with regards to Gaza,” said John Kilduff, partner at Again Capital LLC, adding that successful peace talks would prompt Yemen’s Houthi rebels to allow oil tankers to pass through the Red Sea.
US Secretary of State Antony Blinken said on Thursday he believes talks in Qatar could lead to a ceasefire agreement between Israel and Hamas in Gaza.
Blinken met with Arab foreign ministers and Egyptian President Abdel Fattah El-Sisi in Cairo, while negotiators in Qatar focused on a roughly six-week ceasefire.
While a possible ceasefire means oil can flow more freely globally, a lower U.S. oil rig count and the possibility of a U.S. interest rate reduction have supported prices.
The conflict in Eastern Europe also prevented oil prices from falling further. This Friday, Russia launched the biggest missile and drone attack on Ukrainian energy infrastructure since the start of the war, hitting the country’s largest dam and causing power cuts in several regions, according to information from Kiev.
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