FX.co ★ WTI Falls Despite EU Oil Sanctions, Posts Weekly Loss

On Friday, West Texas Intermediate (WTI) crude oil futures saw a slight decline of 0.3%, concluding at $67.3 per barrel, and marking a 1% loss for the week. This movement was a result of mixed signals from U.S. economic data juxtaposed against the backdrop of new European Union sanctions on Russian energy exports. While data indicated a downturn in U.S. housing, hinting at weakened residential investment, there was positive news in the form of improved consumer confidence and reducing inflation, which fueled optimism for potential future interest rate cuts and a rise in energy demand. Concurrently, the EU implemented its 18th sanctions package against Russia's oil sector, featuring a novel floating price cap and prohibitions on petroleum products derived from Russian crude. This ban led to an increase in U.S. and European diesel futures, propelling refining margins to heights not seen in several months. In another significant development, Chevron finalized its $55 billion acquisition of Hess, thereby acquiring a stake in a significant oil find off the coast of Guyana.