Oil prices down during week ending Oct. 27 amid supply and demand fears

- While data triggered demand worries in US, world's largest oil consumer, concerns remain about whether Israel will launch ground operation in Gaza

Oil prices decreased during the week ending Oct. 27 over eased global supply concerns and intensified demand worries in the US, the world's largest oil consumer.

International benchmark Brent crude traded at $89.53 per barrel at 3.32 p.m. local time (1232 GMT) on Friday, falling by around 2.9% relative to the closing price of $92.16 a barrel on Friday last week.

West Texas Intermediate (WTI), the American benchmark, was trading at $84.86 a barrel at the same time on Friday, down almost 4.4% from last Friday's session, which closed at $88.75 per barrel.

Both benchmarks started the week on Monday amid diplomatic efforts to settle the Israel-Palestine conflict.

The Cairo peace summit was held to discuss the latest developments in the conflict between Israel and Palestine with international, Arab and UN participation on Oct. 21. At least 31 countries and three international organizations confirmed their participation in the summit, according to the private Cairo News Channel.

Meanwhile, two convoy of relief trucks entered the Gaza Strip from the Egyptian side of the Rafah crossing over the weekend, the first aid deliveries to the area since Oct. 7, when the recent fighting between Hamas and Israel started.

The US decision on Oct. 18 to partially ease sanctions on the oil, gas and gold sectors in Venezuela also alleviated supply concerns, limiting the upward trend of oil prices.

During the week, prices continued to fluctuated as concerns remain about whether Israel will launch a ground operation in Gaza in the Israeli-Palestinian conflict.

Oil prices once again decreased on Wednesday over weak economic data from Europe.

The Euro zone manufacturing purchasing managers' index (PMI), which measures the activity of managers in the manufacturing sector, released on Tuesday, raised concerns that a recession in the region will impact oil demand negatively.

Data pointing to the slowdown in major economies such as Germany and the UK also cast doubts over oil demand.

Meanwhile, the release of Israeli hostage, Yocheved Lifshitz on Tuesday after held in captivity for two weeks by Hamas, in which she praised the Palestinian resistance group, also contributed to the narrative that the tension might ease.

Prices continued to decline with data showing a demand decrease in the US.

The Energy Information Administration (EIA) data released late Wednesday showed a jump of 1.4 million barrels in crude oil inventories, raising concerns about demand and driving down prices.

However, oil prices increased again on Friday as investors fretted about worsening supply shortages for the remainder of the year.

The US military launched airstrikes on two facilities used by Iran's Islamic Revolutionary Guard Corps and affiliated groups in eastern Syria, Defense Secretary Lloyd Austin said Thursday.

According to the defense chief, 'these precision self-defense strikes are a response to a series of ongoing and mostly unsuccessful attacks against US personnel in Iraq and Syria by Iranian-backed militia groups that began on Oct. 17.'

Pentagon spokesman Pat Ryder said on Thursday that between Oct. 17 and 26, US and coalition forces have been attacked at least 12 separate times in Iraq and four separate times in Syria.

Ryder, not providing names for the groups that are responsible for these attacks, said 'We know that these groups are affiliated with Iran.'

He also confirmed that 'approximately 900 troops have subsequently deployed or are in the process of deploying' to the Middle East.

By Firdevs Yuksel

Anadolu Agency

energy@aa.com.tr