NEW YORK- Oil prices slipped on Friday and were flat on the week as the possibility of a ceasefire in Gaza weakened crude benchmarks, while the war in Europe and shrinking US rig count cushioned the fall.
Brent futures for May delivery settled at $85.43, losing 35 cents. US crude settled at $80.63 a barrel, falling 44 cents. Both benchmarks logged less a than 1 percent change on the week.
“Everyone is watching for what the weekend will bring with Gaza,” said John Kilduff, partner with Again Capital LLC, adding that successful peace talks would prompt Yemen’s Houthi rebels to allow oil tankers to pass through the Red Sea.
US Secretary of State Antony Blinken said on Thursday he believed talks in Qatar could reach a Gaza ceasefire agreement between Israel and Hamas.
Blinken met Arab foreign ministers and Egypt’s President Abdel Fattah El-Sisi in Cairo as negotiators in Qatar centered on a truce of about six weeks.
Meanwhile, the US dollar was set for a second week of broad gains after the Swiss National Bank’s surprise interest rate cut on Thursday bolstered global risk sentiment.
A stronger dollar makes oil more expensive for investors holding other currencies, dampening demand.
While a possible ceasefire meant crude might move more freely globally, a lower US oil rig count and the potential for easing US interest rates helped support prices.
“We are still keeping fresh highs on the table given broad-based expansion in risk appetite that accelerated following the mid-week Fed comments that proved less hawkish than anticipated,” said Houston-based Jim Ritterbusch, of Ritterbusch and Associates.
US equities, which tend to move in correlation with oil prices, hit record highs after the Federal Reserve ended its regular meeting with no change in US rates on Wednesday.
