Oil prices were largely unchanged on Friday, but remained on track for a fourth consecutive week of gains, trading near their highest levels since late April. This was driven by expectations of strong summer fuel demand and some supply concerns.
Brent crude futures, which have risen 7 percent over the past four weeks, dipped slightly by 2 cents to $87.41 per barrel as of 01:43 GMT. Meanwhile, U.S. West Texas Intermediate (WTI) crude futures, which have climbed 9 percent in the same period, edged up 9 cents to $83.97, as trading was thin due to the U.S. Fourth of July holiday on Thursday.
Strong demand expectations, geopolitical tensions lift prices
The rise in oil prices this week was supported by strong mobility indicators and increasing geopolitical tensions in the Middle East, according to analysts at ANZ Research. Additionally, the U.S. Energy Information Administration (EIA) reported a substantial 12.2 million barrel draw in inventories last week, significantly more than the expected 700,000 barrel draw.
Inventory drawdown, unemployment data provide further support
Further supporting the oil market, U.S. data on Wednesday showed a rise in first-time unemployment claims and an increase in the overall jobless numbers, which analysts said could potentially lead to interest rate cuts by the Federal Reserve, thereby bolstering oil prices.
Read more: Oil prices slide as weak U.S. economic data raises demand concerns
Supply-side concerns emerge from Russia and OPEC
On the supply side, Reuters reported that Russian oil producers Rosneft and Lukoil will significantly reduce oil exports from the Black Sea port of Novorossiisk in July. Additionally, Saudi Aramco cut the price for its flagship Arab Light crude to be sold to Asia in August, indicating the pressure faced by OPEC producers as non-OPEC supply grows.
Traders were also monitoring the ongoing war in Gaza and the upcoming elections in France and the United Kingdom, according to the analysts.
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