FX.co ★ Oil Holds Losses

WTI crude oil futures remained around $61.5 per barrel on Friday, maintaining losses from the previous session as the geopolitical risk premium diminished following developments in the Middle East. Recently, Israel and Hamas have reached an initial agreement on a ceasefire plan, marking a significant advancement in US and Qatari-mediated negotiations to resolve the two-year conflict. Despite this, oil prices are still poised for a weekly increase, bolstered by news that the United States has imposed sanctions on over 50 individuals, companies, and vessels linked to Iran's energy trade. This includes a critical import terminal and a Chinese refinery. While U.S. crude inventories have risen for the second consecutive week, they remain near seasonal lows. Concurrently, stocks at Cushing and of refined products have decreased, as reported by the EIA. Earlier in the week, OPEC+ decided on a modest production increase, which was the lowest option discussed and fell short of market expectations for a more substantial rise.