Quick overview

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Oil prices sank this week as the ceasefire between Iran and Israel held, easing concerns about supply risks in the Middle East. However, prices rose on Friday due to increased summer driving in the United States, which boosted fuel demand.

US West Texas Intermediate crude increased by 0.51 percent to $65.57 a barrel, while Brent crude futures rose 0.5 percent to $68 a barrel. For the week, prices were anticipated to fall by roughly 12 percent.

Oil futures dropped to their lowest point in over a week following US President Donald Trump’s announcement on Tuesday regarding the ceasefire between Iran and Israel. However, US government data showed a decline in last week’s fuel and crude inventories, while refining activity and demand grew, leading to a slight rebound in oil prices on Thursday. The market is beginning to absorb the news that crude oil supplies are becoming increasingly limited.

Additionally, oil prices were supported by a drop in the dollar index, which fell to a three-year low after a report indicated that President Trump plans to appoint the next Federal Reserve chair early, sparking new speculation. When the dollar declines, holders of other currencies can purchase oil more cheaply, increasing demand and helping stabilize prices.

 Prime Minister Benjamin Netanyahu alleviated fears of ongoing supply risks by stating that the outcome of Israel’s conflict with Iran presented peace opportunities that the country should not overlook.