Oil prices settle lower, post gains for fourth week

Oil drilling rigs

Oil prices fell on Friday but marked their fourth consecutive weekly gain, as markets assessed the impact of US sanctions on Russia alongside a potential easing of geopolitical tensions in the Middle East.

At the close, Brent crude futures for March delivery dropped 0.6%, or $0.50, to $80.79 a barrel, though the benchmark recorded a weekly gain of 1.3%.

Meanwhile, WTI crude futures for February delivery declined by 1%, or $0.80, to $77.88 a barrel, but the US benchmark rose nearly 1.7% over the week.

This comes after Israel's Security Cabinet approved a ceasefire agreement earlier today, paving the way for the return of the first hostages from Gaza as early as Sunday. The agreement also bolstered expectations for halting Houthi militia attacks on ships in the Red Sea.

Downward pressure on prices was further influenced by economic data revealing that the world's second-largest refining industry, after the United States, processed 1.6% less crude oil last year at 708.43 million metric tons. This marked the first drop in China's refinery output in more than two decades, excluding 2022.

Additionally, Guyana’s Finance Minister, Ashni Singh, told parliament that his country achieved its fifth consecutive year of double-digit economic growth in 2024, expanding by 43.6%. This growth was driven by increased oil production, which averaged 616,000 barrels per day.