Oil prices were set for weekly gains on Friday, supported by a positive demand outlook in the world's biggest oil-consuming countries and escalating tensions in the Middle East, fueling concerns about supply disruptions.
International benchmark Brent crude traded at $84.49 per barrel at 1.44 p.m. local time (1044 GMT) on Friday, falling by around 1.84% relative to the closing price of $82.96 a barrel on Friday last week.
West Texas Intermediate (WTI), the American benchmark, traded at $79.92 a barrel at the same time on Friday, for a drop of about 2.32% from last Friday's session that closed at $78.11 per barrel.
Geopolitical tensions escalated with sustained Israeli attacks on the Palestinian side of the Rafah border crossing.
Yemen's Houthi group threatened on Tuesday to expand its attacks on shipping routes in the Red Sea if the Israeli military invades the city of Rafah in the southern Gaza Strip.
Cease-fire talks were held in Cairo in the presence of delegations from Qatar, the US and the Palestinian group Hamas.
According to Israeli media, the Israeli team departed Cairo on Thursday night. Media reports, citing anonymous, informed sources, stated, without elaborating, that there are 'unsolvable disagreements' between the two sides.
Oil prices rose over dwindling hopes of reaching a cease-fire as fears were raised about the conflict expanding in the region.
Data showing elevated demand appetite in the US and China, the world's biggest oil consumers, also aided price increases during the week.
US commercial crude oil inventories decreased by 1.4 million barrels during the week ending May 3, in line with market expectations of a 1.43 million-barrel decline, according to data released by the Energy Information Administration (EIA) late on Wednesday.
Crude oil imports in China, the world's largest oil importer, reached 10.88 million barrels per day last month, increasing by 5.45% year-on-year.
Oil demand in the country is also expected to increase by 680,000 bpd this year, according to the Organization of the Petroleum Exporting Countries (OPEC) latest report.
Imports in China increased by 8.4%, above expectations, which experts interpret as a positive sign that expenditures in the country are on the rise.
By Zeynep Beyza Kilic
Anadolu Agency
energy@aa.com.tr