Oil prices dipped in early trade on Friday, trimming part of the previous day's surge but remaining on track for a weekly gain, as fresh U.S. sanctions on Russia's two biggest oil companies over the war in Ukraine fuelled supply concerns.
Brent crude futures fell 36 cents, or 0.55%, to $65.63 at 0333 GMT. U.S. West Texas Intermediate crude futures were down 33 cents, or 0.58%, at $61.43.
"Crude is levelling off, some profit-taking is setting in, indicating the market is not hitting the panic button over Russian supply," said Vandana Hari, the founder of oil market analysis provider Vanda Insights.
"It is likely to be wait-and-watch mode, until the next twist in the saga, that could be an escalation or a de-escalation," Hari added. "Looks like the market is betting on the latter."
Both benchmarks jumped more than 5% on Thursday and were set for about a 7% weekly gain, the biggest since mid-June.
Brent crude futures fell 36 cents, or 0.55%, to $65.63 at 0333 GMT. U.S. West Texas Intermediate crude futures were down 33 cents, or 0.58%, at $61.43.
"Crude is levelling off, some profit-taking is setting in, indicating the market is not hitting the panic button over Russian supply," said Vandana Hari, the founder of oil market analysis provider Vanda Insights.
"It is likely to be wait-and-watch mode, until the next twist in the saga, that could be an escalation or a de-escalation," Hari added. "Looks like the market is betting on the latter."
Both benchmarks jumped more than 5% on Thursday and were set for about a 7% weekly gain, the biggest since mid-June.
