Oil prices settled lower on Friday with Brent crude oil futures settled down 36 cents, or 0.45%, at $79.04 a barrel, while the US West Texas Intermediate (WTI) crude futures settled down 29 cents, or 0.38%, to $75.56 per barrel.
Investors weighed factors such as possible supply disruptions in the Middle East and Hurricane Milton’s impact on fuel demand in Florida.
For the week, however, both benchmarks rose by more than 1 percent.
Market analysts warned that development over Israel continues to hold over the market even after weeks since Iran’s massive missile attack.
There are talks that if Israel destroys Iran’s oil and gas infrastructure, prices will rise.
Crude benchmarks spiked so far this month after Iran launched more than 180 missiles against Israel on October 1, raising the prospect of retaliation against Iranian oil facilities.
However, Israel has yet to respond.
US President Joe Biden has warned Israel against hitting oil facilities in Iran, one of the world’s biggest producers.
Iran has warned that any attack on its infrastructure would provoke an even stronger response, with analysts warning that it could resort to placing pressure on important transit chokepoints like the Strait of Hormuz.
For years, Iran has threatened to block the strategic Strait of Hormuz, through which around 20% of the world’s oil supply flows.
A major disruption to the flow of oil and gas from the Middle East would affect the Chinese economy, which has faced its own challenges.
China imports an estimated 1.5 million barrels of oil a day from Iran, accounting for 15% of its oil imports from the region.
Weather development in the US weighed on prices as Hurricane Milton blew through Florida, leading to petrol shortages as drivers stocked up ahead of the hurricane.
There are indications that the destruction could go on to dampen fuel consumption in the hurricane’s aftermath.
Florida is the third-largest petrol consumer in the US, but there are no refineries in the state, making it dependent on waterborne imports.
