Oil Prices Ease 4% in 5 Days, Brent Hovers Below $100
Oil prices eased more than 4% in 5 days as recovering flows through the Strait of Hormuz and potential emergency fuel stock releases ease supply concerns, outweighing renewed uncertainty over US-Iran talks.
International benchmark Brent crude futures for December delivery traded at $99.83 per barrel Friday, down 4.3% from last Friday’s close of $104.32.
US benchmark West Texas Intermediate (WTI) crude futures for November delivery traded at $89.73 per barrel, down around 2.9% from $92.41 a week earlier.
Oil prices started the week high, climbing above $100 per barrel after Iran ruled out near-term negotiations with the United States, weakening expectations for a diplomatic agreement.
Oil prices declined Wednesday following reports of higher flows through the Strait of Hormuz, while plans by the US to release additional oil from its Strategic Petroleum Reserve and expectations of tighter US monetary policy added further pressure on prices.
However, oil prices edged higher on Thursday, pushing Brent back above $100 a barrel, as stalled US-Iran talks stoked fears of a prolonged conflict and supply disruptions.
Following an impasse in Qatari-mediated talks in New York, US Secretary of State Marco Rubio asked an Iranian delegation, including Foreign Minister Abbas Araghchi, to leave. Iran’s UN mission denied they were forced out.
This diplomatic breakdown, combined with reports that the US was weighing a diesel export ban, offset easing supply concerns and supported prices.
Finally, oil prices fell Friday as expectations that European countries could release emergency diesel reserves eased concerns over tight refined-product supplies, although renewed geopolitical tensions in the Middle East limited losses. Oil Prices Ease on Supply Boost Expectation, Brent Dips to $101
