Oil prices are on track to post a modest weekly loss, retreating from midweek highs as easing tensions in the Middle East offset earlier gains.
International benchmark Brent crude traded at $64.05 per barrel at 3.08 p.m. local time (1208 GMT), down from last Friday's close of $64.28, reflecting a slight weekly loss of about 0.4%.
US benchmark West Texas Intermediate (WTI) was at $60.18 per barrel, compared with $60.51 last week, showing a marginal drop of around 0.5%.
Prices fluctuated through the week amid mixed market signals. Oil initially rose on geopolitical tensions related to the Russia-Ukraine conflict, while the OPEC+ alliance, comprising some of the biggest oil producers in the world, confirmed a modest November output increase of 137,000 barrels per day, supporting market stability but keeping oversupply concerns in focus.
The US Treasury imposed new sanctions targeting Iran's petroleum and petrochemical exports, a move closely monitored by markets but with limited immediate impact on prices.
Moreover, the lack of progress on a Ukraine peace deal is keeping the risk of further sanctions on the Russian oil sector alive.
Later in the week, a US-brokered cease-fire between Israel and Hamas eased supply disruption fears in the oil-rich Middle East, contributing to a slight decline in prices.
The truce includes Israeli troop withdrawals, the reopening of the Rafah border crossing, the entry of humanitarian aid into Gaza, and the release of hundreds of Palestinian prisoners. Hamas stated that guarantees from the mediators and the US confirm the Israeli war in Gaza has "fully ended."
Meanwhile, US Energy Information Administration (EIA) data showed a 3.7 million-barrel build in commercial crude inventories, signaling weaker refinery demand, while a 1.6 million-barrel draw in gasoline stocks pointed to resilient consumption in certain segments in the world's biggest consumer.
Analysts expect oil to remain range-bound in the short term, as weaker demand and oversupply concerns weigh on prices, while US sanctions on Iran and geopolitical risks provide support.
By Firdevs Yuksel
Anadolu Agency
energy@aa.com.tr
