Oil Posts Weekly Loss, Brent Price Falls to $59.60 per Barrel
Oil closed the week in loss, pressured by growing expectations of a Russia–Ukraine peace deal, weak demand signals from the US, and easing concerns over potential supply disruptions from Venezuela, despite intermittent geopolitical flare-ups that helped limit losses.
International benchmark Brent crude traded at $59.67 per barrel, down 2.2% from last Friday’s close of $61.02. US benchmark West Texas Intermediate (WTI) was at $57.37 per barrel, falling around 4.3% compared with $59.93 last week.
Sentiment was largely driven by optimism that diplomatic efforts to end Russia’s war in Ukraine could accelerate. US President Donald Trump repeatedly called on Kyiv to “move quickly” toward an agreement ahead of talks involving US and Russian representatives, reinforcing expectations that sanctions on Russian crude could eventually be eased.
Markets also reacted to reports that Russian Direct Investment Fund head Kirill Dmitriev was expected to take part in discussions, strengthening the perception that Russian oil flows could remain stable or even increase over time.
Analysts said the prospect of reduced sanctions and fewer disruptions to Russian energy infrastructure lowered the geopolitical risk premium, weighing on prices.
Bearish pressure throughout the week was compounded by data from the US Energy Information Administration (EIA), which pointed to fragile demand conditions in the world’s largest oil consumer.
US commercial crude inventories fell by about 1.3 million barrels, well below market expectations for a 2.4 million-barrel draw, while gasoline stockpiles surged by roughly 4.8 million barrels.
At the same time, average US crude production edged up by around 10,000 barrels per day (bpd), reinforcing perceptions of ample supply.
Oil prices saw brief upward moves after Trump ordered a “full and complete” blockade of sanctioned Venezuelan oil tankers and confirmed the seizure of vessels off Venezuela’s coast.
However, gains proved short-lived as no material disruption to oil flows was reported.
Comments from Mexican President Claudia Sheinbaum, who opposed any external intervention in Venezuela and called for a peaceful solution through the UN, further eased concerns over potential supply losses.
Experts said diplomacy-focused statements reduced fears of Venezuela-related disruptions, limiting the upside impact of US-Venezuela tensions.
While Venezuela produces about 1.1 million bpd, analysts noted its share of global trade remains relatively small, making sustained price support unlikely without broader. Tech Stocks Nvidia, Alphabet Drag Global Equities Markets
