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  • The International Energy Agency (IEA) could lower demand outlook.
  • Saudi Arabia on Friday announced a temporary ceasefire in Yemen.
  • Barrel of West Texas Intermediate (WTI) is down more than 4% this week.

Crude oil prices remained under pressure on Friday and the barrel of West Texas Intermediate (WTI) dropped to its lowest level in two weeks at $54.73 pressured by easing tensions in the Middle East and global demand concerns.  

Saudi Arabia on Friday agreed to a partial ceasefire in Yemen and revived hopes of the four-year war between the kingdom and Houthi militants coming to an end and weighed on crude oil prices.  

Energy demand outlook continues to hurt crude oil prices

In an interview with Reuters, the International Energy Agency’s (IEA) director, Fatih Birol, said that they could lower the demand forecasts for the rest of the year and 2020. “If the global economy weakens, for which there are already some signs, we may lower oil demand expectations,” Birol said and put additional weight on crude oil’s shoulders.

Although the WTI staged a technical recovery and turned positive on the day near $56.70 in the last hour ahead of the Baker Hughes’ weekly oil rig count data, it still erases nearly 4% on a weekly basis.

Technical levels to watch for