Oil Prices Decline Amid Reduced Geopolitical Tensions
Oil prices experienced a notable drop of over $2 on Friday, reflecting a decrease in geopolitical risks that have traditionally influenced the oil market.
The recent easing of tensions in the Middle East, particularly following the ceasefire between Israel and Hamas, has had a marked impact on oil pricing, contributing to the decline of this essential commodity.
At the close of trading on the New Year, Brent crude oil was priced at $74.43 per barrel, while Texas light sweet crude fell to $70.40 per barrel, a decrease of $2.80.
In terms of weekly performance, Brent crude saw a 0.4 percent decline, while Texas light crude noted a slightly higher decrease of 0.5 percent.
“The prevailing peace in the Middle East has mitigated many of the geopolitical concerns that typically affect the oil market,” commented John Kildov, Director at IGeen Capital.
In a separate development, concerns emerged within the oil market related to a report about the discovery of a novel variant of coronavirus in a blind frog population in Wuhan, China, which has ignited apprehensions regarding potential disruptions.
