WTI crude futures fell about 2% to $80.8 on Friday and are on track to lose about 6% on the week, marking a second consecutive week of declines. Oil prices are now back to levels before the Hamas attacked Israel on October 7th, as concerns the conflict in the Middle East would disrupt supply eased. At the same time, the demand outlook remains gloomy, with the ISM Services PMI for the US falling more than anticipated while in China, the biggest importer, manufacturing fell back into contraction and the services sector grew only slightly faster. Also, US crude stockpiles rose for a second week. Meanwhile, Saudi Arabia is expected to reconfirm the extension of its voluntary oil-output cut of 1 million barrels per day through December.
