Oil prices showed little movement on Friday but remained poised for significant weekly gains. Investors are weighing the potential for a broader conflict in the Middle East to disrupt crude supplies against a well-supplied global market.
As of 04:15 GMT, Brent crude futures fell by 8 cents, or 0.1 percent, settling at $77.54 a barrel. Meanwhile, U.S. West Texas Intermediate crude futures decreased by 6 cents, or 0.08 percent, to $73.65 a barrel.
Investor sentiment
This week has seen bearish positions on oil begin to unwind as concerns about possible supply interruptions in the Middle East rise. Additionally, there is growing optimism that recent economic stimulus measures in China might boost demand.
Read more: Oil prices surge amid fears of Middle East conflict disrupting crude shipments
Weekly performance
Both benchmarks are on track for weekly increases of approximately 8 percent. While worries about oil supply had driven prices higher earlier in the week, these concerns have been mitigated by OPEC‘s available production capacity and the absence of significant disruptions to global crude supplies due to the unrest in the Middle East.
Developments in Libya
On Thursday, Libya’s eastern-based government and the Tripoli-based National Oil Corporation announced the reopening of all oilfields and export terminals following the resolution of a leadership dispute within the central bank, effectively ending a crisis that had severely impacted oil production.
OPEC production insights
Both Iran and Libya are OPEC members. In 2023, Iran, which is under U.S. sanctions, produced around 4.0 million barrels per day, while Libya produced approximately 1.3 million bpd last year, according to the U.S. Energy Information Administration.
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