Oil prices rose on Friday but were on track for their biggest weekly drop since March 2023. Traders pulled back after the Iran-Israel conflict failed to cause major supply disruptions.
Brent crude was up 42 cents at $68.15 a barrel by 1328 GMT. U.S. West Texas Intermediate crude rose 51 cents to $65.75. Both contracts were set to fall about 12% this week.
Brent briefly climbed above $80 during the 12-day conflict that began on June 13 when Israel targeted Iran’s nuclear sites. Prices later dropped to $67 after U.S. President Donald Trump announced a ceasefire between Iran and Israel.
The market has returned to focusing on supply and demand ahead of the OPEC+ meeting on July 6. Producers are expected to approve another output increase of 411,000 barrels per day.
Oil inventory reports this week showed falling middle distillate stocks. Data from the U.S. Energy Information Administration showed crude and fuel inventories fell as refining activity and demand increased.
In Europe, gasoil stocks at the Amsterdam-Rotterdam-Antwerp hub dropped to their lowest in more than a year. Singapore’s middle distillate inventories also declined as net exports rose.
Meanwhile, China’s imports of Iranian crude oil surged in June. Between June 1 and 20, China bought more than 1.8 million barrels per day, according to ship tracking data.
