Oil prices are on track for a weekly decline of around 12% as the ceasefire between Iran and Israel continues to ease concerns over potential supply disruptions in the Middle East.
Despite the overall weekly loss, prices rose on Friday amid increased U.S. fuel demand driven by the summer driving season, reports news agencies.
As of 01:11 GMT, Brent crude futures were up 34 cents (0.5%) at $68.07 per barrel, while U.S. West Texas Intermediate crude gained 33 cents (0.51%) to reach $65.57.
Oil futures had slumped earlier in the week after U.S. President Donald Trump announced a ceasefire agreement, lowering geopolitical risks.
However, prices rebounded on Thursday after U.S. government data showed a drop in crude and fuel inventories, pointing to higher refining activity and demand.
Phil Flynn, senior analyst at Price Futures Group, noted that “the market is starting to digest the fact that crude oil inventories are suddenly very tight.”
Prices were also buoyed by a weaker U.S. dollar, which hit a three-year low amid speculation that Trump may appoint a new Federal Reserve chair sooner than expected—raising hopes of upcoming interest rate cuts.
A weaker dollar makes oil more affordable for non-U.S. buyers, typically boosting demand.
Additionally, remarks by Israeli Prime Minister Benjamin Netanyahu about peace prospects with Iran helped ease fears of renewed regional conflict, further calming oil markets.
