Oil prices are on track to post a narrow weekly decline for the week ending July 18, as markets grappled with a complex mix of supply and demand signals.
The international benchmark Brent crude was trading at $69.39 per barrel at 2.45 p.m. local time (1145 GMT) on Friday, marking a fall of around 0.9% from last week's closing price of $70.01.
Similarly, the American benchmark West Texas Intermediate (WTI) traded at $66.83 per barrel, a decrease of approximately 1.1% from last Friday's close of $67.56.
Although prices saw an uptick on Friday, driven by fresh supply concerns following drone attacks on oil fields in northern Iraq and newly announced European Union (EU) sanctions on Russia, the broader weekly trend remained slightly bearish.
Throughout the week, oil prices fluctuated due to conflicting market signals. Prices rose on Monday, buoyed by geopolitical risks and expectations of a more accommodative US monetary policy.
However, gains were capped by remarks from US President Donald Trump, who warned of 100% secondary tariffs on Russia, raising concerns about global trade tensions and its potential impact on demand.
US inflation data, showing higher-than-expected consumer price growth, further dampened hopes of a near-term interest rate cut by the Federal Reserve.
Higher interest rates typically strengthen the US dollar, making oil more expensive for holders of other currencies and weighing on global demand.
On the geopolitical front, tensions escalated in the Middle East following drone attacks on oil fields in northern Iraq, which damaged infrastructure and intensified fears of supply disruptions.
In addition, Israel's airstrikes in Syria fueled market jitters this week, amid reports suggesting prolonged escalations in the region.
In a further blow to supply stability, the EU on Friday unveiled one of its "strongest" sanctions packages yet against Russia, including a ban on imports from Nord Stream gas pipelines and additional measures targeting Russian oil exports.
The package targets 105 more vessels associated with Russia's so-called "shadow fleet", EU's foreign policy chief Kaja Kallas said on X.
By Firdevs Yuksel
Anadolu Agency
energy@aa.com.tr