• Oil prices edged higher following a significant drop amidst easing Middle East supply concerns.
• The Iran-Israel ceasefire has calmed market fears, leading to a notable forecasted weekly decline.
• US government data reflects tightening crude oil inventories, contributing to price fluctuations.
• Analysts predict oil remains oversupplied despite recent international tensions.
• Current Brent prices hover around $68 per barrel amidst mixed market signals.

Oil prices have experienced slight increases after substantial declines earlier in the week, as traders digest the implications of the Iran-Israel ceasefire. Brent crude rose about 1 percent to near US$68 a barrel, while West Texas Intermediate was just above US$65. This comes after a tumultuous period where prices slumped 13 percent as geopolitical tensions eased, reducing the risk to global oil supplies, according to SCMP, Channel News Asia, Reuters, and India Times.

Despite the modest intraday gains, both Brent and WTI crude benchmarks are set to drop nearly 12 percent for the week. This marks the largest weekly decline since March, largely attributed to the fading concerns over supply disruptions linked to the Iranian conflict. "Absent the threat of significant supply disruption, we still view oil as fundamentally oversupplied," Macquarie analysts noted, reflecting an anticipated surplus in future market balances, according to Channel News Asia, Reuters, and India Times.

Supporting the modest rise in prices, recent U.S. government data indicated a decline in crude oil and fuel inventories, coupled with an increase in refining activity and demand. Phil Flynn, a senior analyst at the Price Futures Group, stated, "The market is starting to digest the fact that crude oil inventories are very tight all of a sudden," which could bolster prices in the short term. Furthermore, a weaker dollar created additional bullish sentiment by making oil more affordable for non-dollar holders, influencing market dynamics, according to SCMP, Reuters, and India Times.