Global oil prices have recorded one of their sharpest weekly declines in years, as investors anticipate a possible easing of the conflict involving Iran and a recovery in Middle Eastern oil supplies.
International benchmark Brent crude ended Friday’s trading at $98.32 per barrel, while US West Texas Intermediate (WTI) crude settled at $90.83 per barrel.
Brent fell approximately 17% during the week, marking its steepest weekly percentage decline since the COVID-19 pandemic, while WTI dropped around 13%, according to Reuters.
The decline followed the US midterm elections, in which President Donald Trump’s Republican Party lost control of Congress, raising expectations that Washington could pursue a diplomatic solution to the conflict with Iran.
Oil prices plunged more than 8% on Wednesday alone, reaching their lowest levels in over two months, before recovering some ground later in the week.
Meanwhile, signs of improving global oil supplies and weakening demand have added downward pressure on prices.
According to Reuters, analysts have identified indications of an emerging supply surplus as Middle Eastern oil exports recover and higher energy costs reduce global consumption.
However, continued attacks on oil tankers in the Gulf and the Strait of Hormuz have raised concerns about possible supply disruptions, limiting further price declines.
For fuel-importing countries such as Sri Lanka, sustained declines in international oil prices could help reduce import costs and ease pressure on domestic fuel prices. (Newswire)
