Oil prices drop as hopes of a de-escalation in the Middle East rise
Shafaq News/ Oil prices experienced a decline towards the end of the week following the release of two American detainees by Hamas in Gaza, raising hopes that the Israeli-Palestinian crisis might not escalate further, averting potential disruptions in oil supplies across the Middle East.
Brent crude futures dipped by 22 cents, or 0.2%, at $92.16 per barrel. Meanwhile, US West Texas Intermediate crude futures for November delivery, which expired after settlement on Friday, saw a decrease of 62 cents, or 0.7%, closing at $88.75 per barrel. The December contract for West Texas Intermediate crude, the most actively traded, dropped 29 cents to settle at $88.08 per barrel.
Both crude oils' futures contracts had surged by over a dollar per barrel during Friday's session amid growing concerns of a deepening conflict.
On a weekly basis, Brent crude recorded gains of 1.4%, while US crude achieved a 1.2% increase.
Oil prices have also been influenced by expectations of an expanding deficit in the fourth quarter after Saudi Arabia and Russia, the primary producers, extended supply cuts until the end of the year.
Hamas released two American hostages since its attack on Israel on October 7, following Qatari mediation. According to Israeli data, Hamas is currently detaining 203 individuals, including foreigners and those with dual nationalities.
