Oil falls, posts weekly loss of over 12%

Oil drilling rigs

Oil prices fell at Friday’s close, posting their steepest weekly loss since June, pressured by a US-Iran ceasefire agreement, though geopolitical risks remained amid concerns over a potential breakdown.

Brent crude futures for June dropped 0.75%, or 72 cents, to $95.20 a barrel, marking a weekly loss of 12.68%.

US WTI for May delivery declined 1.33%, or $1.30, to $96.57 a barrel, extending weekly losses to 13.42%.

Oil futures came under sharp pressure after the US and Iran agreed to a ceasefire midweek. However, mutual accusations of violations kept geopolitical uncertainty elevated.

Attention is now turning to direct talks scheduled in Pakistan later this week. Shipping activity through the Strait of Hormuz remains highly constrained, keeping spot oil prices at elevated levels despite the ceasefire.

Separately, the state-run SPA, citing an Energy Ministry official, said attacks on Saudi energy facilities have reduced the Kingdom’s oil output capacity by around 600,000 barrels per day.