Oil Prices Dip But Post Fourth Straight Weekly Gain On US Sanctions

DOHA: Oil prices settled lower on Friday but notched their fourth straight weekly gain, as the latest US sanctions on Russian energy trade added to worries about oil supply disruptions. brent crude futures dipped 50 cents, or 0.6%, at $80.79 per barrel, but gained 1.3% last week. US West Texas Intermediate crude futures lost 80 cents, or 1%, at $77.88 a barrel, having climbed 1.7% for the week, noted Al-Attiyah Foundation in its Weekly Energy market Review.

Sanctions on Russia are causing tightness of supply in Europe, India and China, analysts said. The Biden administration unveiled broader sanctions last week targeting Russian oil producers and tankers. Investors are also assessing the potential implications of President-elect Donald Trump's return to the White House on Monday.

Trump's pick for Treasury secretary said he was ready to impose tougher sanctions on Russian oil. However, weighing on oil prices were expectations of a halt in attacks by Yemen's Houthi militia on ships in the Red Sea following a Gaza ceasefire deal. The Houthis' attacks have disrupted global shipping, forcing ships to make longer and more expensive journeys around southern Africa for more than a year. The Israeli security cabinet approved the ceasefire deal on Friday, paving the way for the return of the first hostages from Gaza as early as Sunday. The accord was still conditional on approval by the full cabinet, which was meeting on Friday afternoon.

Asian spot LNG prices slightly declined last week, weighed by healthy inventory levels in the region and weak demand. The average LNG price for March delivery into north-east Asia LNG-AS slipped to $13.90 per million British thermal units (mmBtu), versus $14.00 per mmBtu last week, industry sources estimated.

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