Oil prices fall after six-day rally but remain on track for steepest weekly gain since 2022

Oil prices declined on Friday, ending a six-day upward streak, as reports indicate the US government is considering intervention in the futures market to address rising prices. Additionally, US authorities have issued waivers for Russian oil purchases in an effort to alleviate supply constraints stemming from the ongoing conflict in the Middle East.

Brent crude futures dropped by 95 cents, or 1.1 percent, reaching $84.46 per barrel as of 04:40 GMT. West Texas Intermediate (WTI) also saw a decrease, falling $1.08, or 1.3 percent, to $79.93 per barrel.

Despite the decline on Friday, both benchmarks are poised for significant weekly gains. Brent crude has surged by 16.4 percent this week, while WTI has jumped 19.2 percent. These increases put both on track for their steepest weekly gains since Russia's full-scale invasion of Ukraine in February 2022.

The sharp rise in oil prices earlier in the week followed the outbreak of conflict on February 28 involving the US, Israel, and Iran. This conflict has resulted in the halting of tanker movements through the Strait of Hormuz, a critical passage that typically handles about one-fifth of the world's daily oil supply. The situation has led to disruptions in oil output and the shutdown of refineries and other facilities across the key Middle East energy-producing region.

Sources note that the US government's recent actions, including the consideration of market intervention and the issuance of waivers for Russian oil, are aimed at stabilizing the market and addressing concerns over supply shortages. The ongoing conflict and resulting supply disruptions remain a significant factor influencing global oil prices.