Oil Price Plunge: Biggest Weekly Drop Since 2022

Oil prices rebounded slightly on Friday but recorded their biggest weekly drop in recent years. Brent crude futures rose 4 cents to close at $67.77 a barrel, while U.S. West Texas Intermediate crude gained 28 cents, closing at $65.52.

Brent ended the week down 12%, its worst week since August 2022, while U.S. crude fell about 11%, its worst week since March 2023.

According to CNBC, Brent prices had risen above $80 after Israel's attack on Iranian nuclear facilities on June 13, but retreated after U.S. President Donald Trump announced an Iran-Israel truce.

Rystad analyst Janiv Shah said the market has largely overcome geopolitical risk and is returning to economic fundamentals. The market is also watching the OPEC+ meeting on July 6, where a production increase of 411,000 barrels per day is expected.

Phil Flynn, senior analyst at Price Futures Group, added that expectations of higher demand and a possible end to the war between Israel and Hamas in Gaza, as well as trade deals between the US, Europe and China, would be positive signs for the market.