Oil prices rebounded 1% on Friday to conclude the week nearly unchanged as investors considered the dwindling chances for a swift resolution that could result in the return of more Russian energy supplies to Western markets.
Brent crude futures saw a 1% increase, settling at $70.58 per barrel, after a 1.5% decline in the prior session. U.S. West Texas Intermediate crude (WTI) closed at $67.18 a barrel, up 1%, following a 1.7% drop on Thursday.
Both benchmarks wrapped up the week with minimal fluctuations from the previous Friday, with Brent at $70.36 and WTI at $67.04.
"Brent oil has been around the $70 mark for the last two weeks. Whether it will remain at this level next week hinges on the political news landscape," noted Commerzbank analysts.
Russian President Vladimir Putin indicated support on Thursday for a U.S. ceasefire proposal in Ukraine in principle but raised conditions that suggested a quick end to the conflict was unlikely.
"If the ceasefire continuously gets pushed back, the market may anticipate prolonged Russian oil sanctions," remarked Andrew Lipow, president of Houston-based Lipow Oil Associates.
Chinese entities are reportedly reducing Russian oil imports due to sanctions risks, and Iran received support from China and Russia against U.S. demands for nuclear talks, emphasizing the need for "mutual respect."
The International Energy Agency (IEA) warned on Thursday of a potential excess of global oil supply by approximately 600,000 barrels per day in 2024, citing U.S.-led growth and weaker-than-expected global demand.
Given the unstable macroeconomic conditions due to escalating trade tensions, the IEA revised its demand growth estimates for late 2024 and early 2025, pointing to high risks on the demand side and increasing supply from OPEC+.
In the U.S., the count of active oil rigs saw a slight increase this week, according to services company Baker Hughes.