Oil prices remain on track for a fourth weekly drop amid cautious market sentiment and optimism about the prospects for a peace agreement between Russia and Ukraine, whilst growing tension between the US and Venezuela risks limiting the price decline.
The United States is preparing to intercept more vessels carrying Venezuelan oil after seizing a tanker this week, increasing pressure on Venezuelan President Nicolas Maduro, six sources familiar with the situation said on Thursday.
"Peace talks between Russia and Ukraine will remain in focus next week and beyond," he said, noting that WTI oil prices could test the $55 level if a deal is indeed reached.
Both contracts lost more than 3% this week, reflecting overall market uncertainty, the publication writes.
ANZ Research analysts attributed the recent price drop to reduced risk appetite and subdued forecasts for the oil market.
The Federal Reserve's interest rate cut this week and Chairman Jerome Powell's comments, which were perceived as less hawkish than expected, increased uncertainty.
Meanwhile, according to the latest monthly report from the International Energy Agency (IEA), global oil supply will exceed demand by 3.84 million barrels per day, down from the 4.09 million barrels per day surplus projected in November.
However, data from the Organisation of the Petroleum Exporting Countries (OPEC) released on Thursday indicates that global oil supply in 2026 will largely match demand, contradicting forecasts from the IEA and other organisations of a significant oversupply.
The U.S. Energy Information Administration reported a smaller-than-expected draw in crude oil inventories and a significant increase in fuel inventories last week.
On Wednesday, the leaders of Great Britain, France, and Germany held a phone call with U.S. President Donald Trump to discuss Washington's latest peace efforts to end the war in Ukraine, calling it a "critical moment" in the process.
On Thursday, drones struck an oil platform in the Caspian Sea for the first time, halting production at the facility owned by the Russian company Lukoil.
Fuel card prices will fall in the region of 1 – 1.2 pence per litre for next week.
