Oil prices dropped significantly on Friday, reaching their lowest levels since mid-June, as investors considered a potential ceasefire in Gaza and a stronger U.S. dollar. Brent crude fell by $2.48, or 2.9%, to $82.63 per barrel, while U.S. West Texas Intermediate crude decreased by $2.69, or 3.3%, to $80.13 per barrel.
U.S. Secretary of State Antony Blinken expressed optimism about a ceasefire between Israel and Hamas, which has led to a risk premium in oil trading due to potential threats to global supplies. China’s economy grew by a slower-than-expected 4.7% in Q2, raising concerns about its oil demand. However, oil prices found some support from a slight decrease in U.S. oil rigs and a global tech outage affecting multiple industries. Additionally, two large oil tankers collided and caught fire near Singapore, a critical hub in global oil trade, disrupting operations in one of the busiest sea lanes.