Oil prices may see weekly declines as traders focus on the situation in Ukraine and bearish supply prospects.

Oil prices are rising, but may record a significant drop in the past week. Currently, efforts are being made by all parties to end the Russia-Ukraine conflict through diplomatic means, and the overall bearish fundamentals suggest that the market will be oversupplied next year. Brent crude oil rose by 0.5% to $61.59 per barrel, while West Texas Intermediate rose by 0.6% to $57.77 per barrel. However, both benchmark crude oils fell by 2.6% and 3.2% respectively this week. It is expected that negotiations between Russia and Ukraine will be the main focus next week, while traders are also keeping an eye on the escalating tensions between the United States and Venezuela. Meanwhile, the International Energy Agency has stated that the estimated oversupply in the market has narrowed, but a significant oversupply continues to cast a shadow over the outlook. OPEC's supply and demand forecasts show that the market will be relatively balanced next year. Analysts at ANZ Bank said: "This is a sharp reversal from earlier expectations this year, when the outlook indicated that the market would tighten."