Oil prices set for weekly drop despite Friday uptick

June 27, 2025 (MLN): Oil prices were on track to post a weekly decline as the Iran-Israel ceasefire eased Middle East supply concerns, though they edged higher on Friday amid rising U.S. fuel demand during the summer driving season.

Brent crude traded near $68.19 per barrel, up by 0.68% on the day.

While West Texas Intermediate crude (WTI) was at $65.7 per barrel, up by 0.71% on the day.

Oil futures fell to their lowest level in over a week on Tuesday following U.S. President Donald Trump’s announcement of a ceasefire agreement between Iran and Israel.

However, prices edged higher on Thursday, supported by a drop in U.S. crude and fuel inventories, along with rising refining activity and demand, as CNBC reported.

“The market is starting to digest the fact that crude oil inventories are very tight all of a sudden,” noted Phil Flynn, senior analyst at Price Futures Group.

Additional support for oil came from a weakening U.S. dollar, which fell to a three-year low amid reports that President Trump was accelerating the selection of the next Federal Reserve chair, renewing expectations of potential interest rate cuts.

A softer dollar makes oil more affordable for holders of other currencies, thereby boosting demand.

Meanwhile, just before Thursday’s market close, Israeli Prime Minister Benjamin Netanyahu stated that the outcome of the conflict with Iran could create opportunities for peace remarks that helped further ease concerns over prolonged supply disruptions.

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