Oil prices fell by more than a dollar per barrel on Friday 14th of July due to profit-taking and a stronger dollar. Despite the drop, crude benchmarks still recorded their third-straight weekly gain.
Brent crude futures settled at $79.87 per barrel, down $1.49, or 1.8%, while U.S. West Texas Intermediate crude futures fell $1.47, or 1.9%, to settle at $75.42 a barrel.
The decrease in oil prices was attributed to profit-taking by oil traders who cashed in on the recent strong rally. Additionally, the U.S. dollar strengthened, which led to reduced oil demand, making crude more expensive for investors using other currencies.
The article also mentioned that next week, the rally in oil prices could potentially resume due to various factors such as easing inflation, plans to refill the U.S. strategic reserve, supply cuts, and disruptions that could support the market.
Despite the recent dip, oil prices gained nearly 2% on a weekly basis due to supply disruptions in Libya and Nigeria, raising concerns about potential market tightening in the coming months. Libya experienced shutdowns of several oilfields due to a local tribe’s protest, while Shell suspended loadings of Nigeria’s Forcados crude oil due to a potential leak at a terminal.
Furthermore, the decrease in Russian oil exports also contributed to the potential for higher prices. Russian oil exports were set to be reduced by 500,000 barrels per day in August.
Overall, the article highlights the complex factors influencing oil prices and the potential for further market fluctuations in the near future.
