Oil set for sharp weekly drop but Middle East supply concerns provide floor
Oil prices are set for a sharp weekly drop on expectations of a de-escalation of the Iran war after US President Donald Trump’s party suffered election losses, but Middle East supply concerns from the conflict continue to provide a floor for the market. Brent crude futures for January rose on Friday by $1.57, or 1.6%, to $99.86 a barrel as of 0222 GMT. US West Texas Intermediate futures climbed $1.10, or 1.22% to $91.62 a barrel.Both contracts gained for a second day. Still, the Brent contract is on track to drop by 12% this week after the December contract expired on October 30, while WTI is set to drop 12.1% this week. The contracts plunged earlier this week on expectations that US Congressional elections on Tuesday, which swung the Senate and House of Representatives to the Democrat party and from Trump’s Republicans, could lead to a de-escalation of the US-Israeli war against Iran, now in its ninth month.