Oil prices declined in European trade on Friday for the first time in seven days off six-month highs on active profit-taking.

Prices are heading for the fourth weekly profit in a row amid rising geopolitical tensions in Europe and the Middle East, which threatens global supplies.

Global Prices

US crude fell 0.5% to $86.35 a barrel, with a session-high at $87.03.

Brent prices fell 0.55% today to $90.59 a barrel, with a session-high at $91.23.

On Thursday, US crude rose 1.4%, the sixth profit in a row, scaling a six-month high at $87.18.

Brent rallied 1.75%, the sixth profit in a row, hitting October 2023 highs at $91.26 a barrel.

Weekly Trades

Oil prices are up 4% on average this week, on track for the fourth weekly profit in a row.

Global Supplies

Ukraine continued its drone attacks against Russian energy infrastructure, after hitting Russia’s third largest oil refinery this week.

Iran on the other hand vowed to respond to Israel after accusing it of launching airstrikes against its consulate in Damascus, killing seven Iranian officials.

The increasing tensions between Israel and Iran have stoked concerns once more about a potential widespread conflict in the Middle East that could disrupt supplies.

US Stocks

The Energy Information Administration reported a buildup of 3.2 million barrels in US crude stocks last week, while analysts expected a drop of 0.3 million barrels.

Thus total stocks rose to 451.7 million barrels, the highest since July 2023, in a negative sign for demand in the US.

US Production

The EIA reported no change in US crude production last week at 13.1 million barrels.

Oil Supply Deficit Projections

Bank of America is projecting a global oil supply deficit of 450 thousand bpd in the second and third quarters as global GDP growth rebounds.