Oil prices edged lower on Friday, poised for a second consecutive weekly decline
Oil prices are set to close lower for the second week in a row, as rising expectations of a Russia-Ukraine peace deal offset concerns about potential supply disruptions due to the Venezuelan oil tanker blockade.
Brent crude futures fell 9 cents, or 0.2%, to $59.73 a barrel as of 04:56 GMT, while WTI crude fell 13 cents, or 0.2%, to $56.02 a barrel.
Week-on-week, Brent is down 2.3%, and WTI is down 2.5%.
Last week, the U.S. Coast Guard seized a Venezuelan oil tanker. How the U.S. will enforce Trump's decision to block sanctioned tankers from entering and leaving Venezuela remains unclear. Venezuela accounts for approximately 1% of global supply.
Uncertainty surrounding the implementation details and optimism that a US-led Ukraine peace deal could still emerge are easing global supply concerns and reducing geopolitical risk premiums.
Analysts say that the expansion of measures targeting Russian oil could pose a greater supply risk than Trump’s tanker blockade of Venezuela.
According to two sources familiar with Venezuela’s oil export operations, Venezuela allowed two large crude oil tankers, not subject to sanctions, to depart for China on Thursday.
The lower price of oil will reduce the amount of supply, which could prevent a free fall in prices.
A rally from current levels that breaks above resistance at $56.70–$56.90ish would strengthen the case that this week's selloff to the $54.98 low was a false break lower.
Conversely, a break below $54.98/90ish would reignite downside momentum, targeting the psychological $50.00 level.
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