First weekly decline in oil prices in three weeks as the Middle East crisis sustains

27 Oct 2023 , 10:01 AM

Oil prices increased on Friday, recovering from a previous session’s plunge of more than $2 a barrel as worries over a wider Middle East conflict subsided and the United States, the world’s largest oil consumer, showed indications of declining demand.

Brent crude futures had increased by 45 cents, or 0.5%, to $88.38 per barrel, while U.S. West Texas Intermediate had increased by 42 cents, or 0.5%, to $83.63 per barrel.

Both contracts are expected to see their first weekly decline in three weeks as the geopolitical premium, which was based on concerns that the Israel-Gaza war would affect other Middle Eastern nations and hinder the flow of oil, has decreased.

Overnight, Israeli forces launched their largest ground assault on Gaza in their 20-day conflict with Hamas, infuriating the Arab world.

While the United States and other nations urged Israel to postpone, fearing it could spark wars on other Middle East fronts, Israeli Prime Minister Benjamin Netanyahu had stated that Israeli troops were still getting ready for a full ground invasion.

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