Key facts
- Oil prices declined Friday due to reduced likelihood of US-Iran conflict.
- Brent and WTI crude futures were poised for their first weekly gains in three weeks.
- Earlier Middle East tensions influenced the weekly gains.
- Unexpected inventory levels and falling demand tempered price increases.
Oil prices experienced a decline on Friday, driven by a perceived reduction in the likelihood of renewed conflict between the United States and Iran. This de-escalation sentiment among traders led to lower crude futures. Despite the daily drop, both Brent and WTI crude futures were on track to register their first weekly gains in three weeks. These gains were primarily influenced by earlier heightened tensions in the Middle East and a subsequent limitation on traffic through the Strait of Hormuz. However, the upward momentum was constrained by unexpected inventory levels and a decrease in demand for oil products.