

Market Analysis
Oil prices softened on Friday as markets assessed the implications of prolonged higher U.S. interest rates, although crude benchmarks were on track for their strongest weekly performance in over two months following robust forecasts for crude and fuel demand.
Brent crude futures dipped 34 cents to $82.41 a barrel by 0344 GMT, a 0.4% decline, while West Texas Intermediate (WTI) U.S. crude futures fell 41 cents to $78.21 a barrel, down 0.5%.
Despite the daily decline, both Brent and WTI posted weekly gains exceeding 3%, marking their best week since early April.
The Organization of the Petroleum Exporting Countries (OPEC) maintained its optimistic outlook for global oil demand growth in 2024, supported by projections from Goldman Sachs suggesting strong U.S. fuel demand during the upcoming summer.
This rebound follows losses from the previous week triggered by OPEC+ announcing plans to gradually increase oil production starting in September.
"In summary, this week has seen oil prices recover," commented Tim Waterer, chief market analyst at KCM Trade in Australia. "Further upside in oil prices could be expected as long as the demand outlook remains positive. The trajectory may hinge on the performance of summer demand in the northern hemisphere."
Further boosting market sentiment, Russia affirmed its commitment to meeting its production targets under the OPEC+ agreement, having exceeded its quota in May.
However, the rally in oil prices tempered after the U.S. Federal Reserve decided to maintain interest rates unchanged and postponed potential rate cuts until as late as December.
Meanwhile, the International Energy Agency (IEA) projected in a report on Wednesday that global oil demand could peak by 2029, stabilizing around 106 million barrels per day towards the end of the decade.
On a cautious note, concerns over economic prospects grew following the Fed's stance on rate cuts. Nevertheless, the potential strengthening of the U.S. dollar could lend support to Brent prices, according to BMI analysts.
Market attention also remains focused on ceasefire negotiations in Gaza, with hopes that a resolution could mitigate concerns about oil supply disruptions from the region.
A senior U.S. official expressed significant concern about escalating hostilities on the Israel-Lebanon border, emphasizing the need for specific security arrangements in the area, beyond the Gaza ceasefire.
Paraphrasing text from "Reuters" all rights reserved by the original author.