Oil prices were set for weekly declines during the week ending June 7, after falling to four-month lows following the OPEC+ decision to gradually phase out production cuts until the end of September 2025.
International benchmark Brent crude traded at $80.27 per barrel at 3.23 p.m. local time (1223 GMT) on Friday, falling by around 1.65% relative to the closing price of $81.62 a barrel on Friday last week.
West Texas Intermediate (WTI), the American benchmark, traded at $76.03 a barrel at the same time on Friday, a decrease of about 1.25% from last Friday's session, which closed at $76.99 per barrel.
The Organization of Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, held a meeting last weekend when they announced that the group agreed to extend additional voluntary cuts of 2.2 million barrels per day (bpd), announced in November 2023, until the end of September 2024.
However, the cuts of 2.2 million bpd will be gradually phased out on a monthly basis until the end of September 2025.
Meanwhile, growing cease-fire possibilities in the Middle East, home to the vast majority of global oil reserves, impaiared price rises.
US President Joe Biden confirmed Israel's 'readiness to move forward' with a cease-fire proposal presented to Hamas last week during a call with Qatari Emir Tamim bin Hamad al-Thani, the White House said Monday.
The US, UK, Germany and France reiterated their 'full support' for a Washington-backed cease-fire plan in Gaza on Thursday.
Demand concerns in the US, the world's biggest oil consumer, put downward pressure on prices.
US commercial crude oil inventories increased by 1.2 million barrels to 455.9 million barrels during the week ending May 31, according to data released by the Energy Information Administration late Wednesday.
The inventory buildup, an indicator of weakening demand, was relative to the market prediction of a fall of around 2.1 million barrels.
Over the same period, gasoline inventories also rose by approximately 2.1 million barrels to 230.9 million barrels.
By Zeynep Beyza Kilic
Anadolu Agency
energy@aa.com.tr