Oil prices fall, head for weekly gain

Oil drilling rigs

Oil prices declined on Friday amid restart of Libya's oil production and assessment of the impact of Hurricane Milton damage, as well as Middle East geopolitical tensions.

Brent crude futures for December delivery dropped 0.28%, or $0.22, to $79.18 a barrel, at 7:55 am Makkah time, heading for the second straight weekly gain of 1.3%.

Similarly, WTI crude futures for November delivery lost 0.21%, or $0.16, to $75.69 per barrel, but they are set to end the week 1.67% higher.

“Investors are evaluating how hurricane damage might impact the US economy and fuel demand,” NS Trading president Hiroyuki Kikukawa told Reuters. “Oil prices are likely to hover around the current 200-day average levels, with the primary concern being whether Israel will retaliate against Iranian oil facilities.”

Libya's National Oil Corporation (NOC) said it restored production close to levels before the country's central bank crisis, reaching 1.22 million barrels per day (bpd) on Thursday.