Oil prices weekly loss as market sees crises in Middle East
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| Oil Prices Post Weekly Loss |
Oil prices posted a loss for the week as traders see limited risk that Israel’s retaliatory strike on Iran will trigger a wider war that disrupts crude supplies.
In the same context, U.S. crude oil and global benchmark Brent has fallen 3% and 3.4%, respectively, since last Friday, erasing gains made when investors bid up prices on fears that Israel and Iran were on the brink of a major war.
West Texas Intermediate futures settled 0.5% higher at $83.14 a barrel on Friday, while Brent gained 0.21% to settle at $87.29 a barrel.
Two contracts have largely erased the risk premium built into prices after Israel hit an Iranian diplomatic building in Syria at the start of the month, the event that triggered the current round of hostilities.
Market sentiment has shifted from fear to relief this week after Israel and its U.S-led allies thwarted Iran’s unprecedented drone and missile attack on Israel last weekend.
The Netanyahu government appears to have submitted to international pressure to avoid escalation, waiting days to retaliate and ultimately launching a limited strike against Iran on Friday.
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