Oil futures edge lower despite Middle East tensions

International oil markets retreated marginally on Friday, with Brent crude futures sliding 25 cents to $89.45 a barrel, while West Texas Intermediate crude fell 22 cents to $83.31 a barrel. Both benchmarks recorded 0.3% declines in value.

The modest selloff comes despite persistent tensions in the Middle East, particularly surrounding Iran, which has traditionally supported crude prices due to supply concerns. However, broader market dynamics appear to be tempering bullish sentiment at present.

The weekly performance of crude futures has been marked by competing forces. While geopolitical developments in the region continue to command investor attention, concerns about global demand and macroeconomic factors have offset potential upside from supply disruption risks.

Traders and analysts remain focused on several moving parts: the trajectory of US economic data, Federal Reserve policy signals, and any escalation of hostilities that could impact crude flows from the Middle East. For Indian energy importers, crude price movements remain critical, as the nation depends heavily on external oil supplies.