Crude oil prices are heading towards another weekly decline following news of the ceasefire between the Israeli government and Hamas, which Tel Aviv ratified today.
At the time of writing, Brent crude It was traded at $64.90 per barrel West Texas Intermediate At $61.28, with the Middle East war premium gone.
“This (deal) saw a return to focus on the looming oil surplus, as OPEC continues to wind down production cuts,” ANZ Bank analyst Daniel Hynes wrote in a note earlier today. quote By Reuters. However, the publication noted that indices may end the week with slight gains.
On the other hand, Reuters quote The Russian Deputy Foreign Minister said that efforts to reach a similar agreement with the Ukrainian government were “largely exhausted,” maintaining the war premium associated with this conflict. Later to Reuters a report A Kremlin aide was quoted as saying that Moscow continues to work with Washington to end hostilities.
Head of Commodity Strategy at ING, Warren Patterson, described The Ukraine war is the most prominent upside risk for oil prices, writing in a note on Thursday that the “ongoing threat of sanctions and secondary tariffs targeting Russia” provided support for oil standards.
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“A more aggressive stance by President Trump could put broader Russian supplies at risk. Another major upside risk also stems from Russia on the supply side, specifically the potential for disruptions from Ukrainian drone attacks on Russian energy infrastructure,” Patterson wrote. “While most of these attacks have focused on refineries, there have been instances targeting port infrastructure, which could directly impact crude oil exports,” reiterating ING’s forecast that an oversupply of crude oil will keep a lid on prices for the remainder of this year and all of next year.
Elsewhere, the US Energy Information Administration I mentioned Fuel demand rises for the week ending October 3, with Phil Flynn of Price Futures Group Pointing The amount of 21.99 million barrels per day was the highest since the end of 2022, indicating that demand remains strong in the world’s largest consumer.
Written by Irina Slav for Oilprice.com
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