Oil settles lower, but records weekly gain

Oil prices fell on Friday due to the release of hostages in Gaza, but prices gained their first week of gains in over a month ahead of the OPEC+ meeting to decide on production cuts in 2024.

Brent crude futures settled down 84 cents at $80.58 a barrel, while American West Texas Intermediate crude fell $1.56 from Wednesday’s close to $75.54.

The first group of hostages freed from captivity in Gaza returned to Israel on Friday, marking the first day of a planned four-day truce.

OPEC+ prepared for a meeting with output cuts high on the agenda, following recent oil price declines due to demand concerns and burgeoning supply, particularly from non-OPEC producers.

The meeting, scheduled for Thursday, could put traders’ minds somewhat at ease. A bright spot came in China’s near-term economic outlook, with recent data and fresh aid to the indebted property sector potentially positive for the oil market’s near-term trend.