Oil prices edge lower but stay poised for a weekly gain amid supply concerns

Oil prices retreated on Friday but remain set for a weekly gain amid ongoing supply disruptions in Russia and uncertainty surrounding a potential Ukraine peace deal.

Brent crude dipped 62 cents (0.81%) to $75.86 per barrel by 1304 GMT, while U.S. West Texas Intermediate (WTI) crude declined 63 cents (0.87%) to $71.85. Despite the pullback, both benchmarks have gained around 1.5% this week—their strongest weekly rise since early January. Brent is on track for a second consecutive weekly gain, while WTI is set to snap a four-week losing streak.

Market sentiment remains cautious, with Brent hovering near the midpoint of its projected annual range of $65 to $85 per barrel, according to Ole Hansen of Saxo Bank.

Supply concerns persist after Russia reported a 30-40% reduction in Caspian Pipeline Consortium (CPC) oil flows on Tuesday following a Ukrainian drone attack on a pumping station. However, Tengizchevroil stated that oil shipments from Kazakhstan’s Tengiz oilfield via CPC remain unaffected.

Despite damage to the CPC route, Kazakhstan has managed to pump record-high oil volumes, though the means of sustaining such output remain unclear, industry sources noted.

Meanwhile, geopolitical tensions are escalating. Relations between Ukrainian President Volodymyr Zelenskiy and U.S. President Donald Trump soured after Zelenskiy criticized peace negotiations between the U.S. and Russia that excluded Kyiv. The divide widened further following Trump’s comments blaming Ukraine for initiating the three-year conflict.

Meanwhile, oil prices faced pressure on Friday as U.S. crude stockpiles increased, even as gasoline and distillate inventories declined last week. The Energy Information Administration attributed the shift to seasonal refinery maintenance, which led to reduced processing capacity.