27/6/2025–|Last update: 18:24 (Mecca time)
Despite the slight increase in oil prices on Friday, crude futures are heading to record the largest weekly decline since March 2023, after the risk allowance imposed by the war between Iran and Israel faded, according to a Reuters report.
Brent crude rose 51 cents, or 0.75%, reaching $ 68.24 a barrel by 12:02 pm GMT, while the American West Texas Intermediate crude rose almost the same amount to $ 65.75, an increase of 0.8%.
Prices jumped over $ 80 a barrel during the war that erupted after Israel targeted Iranian nuclear facilities on June 13, which lasted 12 days, before it decreased sharply to $ 67 after US President Donald Trump announced a ceasefire between the two parties.
According to “Reuters”, both decades record a weekly decline approximately 12%, in the largest decline in its kind, reflecting the return of the markets to what experts described as “economic basics” after the disappearance of geopolitical tensions.
“The market has completely exceeded the geopolitical risk of the geopolitical risk a week ago, and it returned to interacting with the basic factors,” said Yanif Shah. He pointed out that the “OPEC Plus” meeting scheduled to be held on July 6 is being awaited by investors, as it is expected to witness a new productivity by 411 thousand barrels per day, in light of the importance of the indicators of summer demand.
For his part, Tamas Fraga, the PVM Oil Associated analyst, pointed out that inventory data also helped support prices, explaining that “several reports of stock showed strong clouds in medium oil products, which provided price support.”
The US Energy Information Administration reported on Wednesday that oil and fuel stocks decreased during the previous week, in conjunction with the high refining and demand activity, which confirms the existence of indications of a relative improvement in the basics despite geopolitical fluctuations.
In a related context, data published on Thursday showed that the gasoline stocks kept independently at the refining and storage center in Amsterdam, Rotterdam and Antoirb (ARA) decreased to their lowest levels in more than a year, while the stocks of medium refined products in Singapore decreased with a high weekly exports.
Besides, China’s imports of Iranian oil increased significantly in June, according to analysts, as shipments accelerated before the outbreak of the conflict and improved demand from independent refineries. China is the largest oil importer in the world and the largest buyer of Iranian crude, as it imported more than 1.8 million barrels per day of Iranian crude between 1 and 20 June, at a record level, according to the data of “Fortaxa” to track the shipping movement.
The US Energy Information Administration reported on Wednesday that oil and fuel stocks decreased during the previous week, in conjunction with the high refining and demand activity, which confirms the existence of indications of a relative improvement in the basics despite geopolitical fluctuations.
The Reuters report concluded that the oil markets are still in a fragile situation, swinging between the movements of major productive alliances and the fluctuations of regional policy, while it appears that fading fears of the breadth of the conflict between Iran and Israel has brought back some balance, but without eliminating the impact of the current fluctuations in the levels of global demand.
