Khaberni - Oil prices dropped more than 2% at the close on Friday, with investors evaluating a potential surplus in supply and a decrease in the war risk premium, along with anticipation of the possibility of reaching a peace agreement in Ukraine early next week between Ukrainian President Volodymyr Zelensky and his American counterpart, Donald Trump.
Brent crude futures fell $1.60 or 2.57% to $60.64 a barrel at the close. West Texas Intermediate crude in the U.S. dropped $1.61 or 2.76% to $56.74 a barrel.
Oil prices are heading towards recording the largest annual drop since 2020 despite supply disruptions pushing oil prices to recover in the past few sessions from a level near its lowest in five years, recorded on December 16th.
Brent has fallen by 19% and U.S. crude by 21% this year, as increased crude oil production has raised concerns about a surplus in the oil supply next year.
