Oil Prices Decline but Still Target 8% Weekly Gain Amid Supply Concerns
Oil prices declined on Friday but remained on track for an 8% weekly gain. US diesel prices reached a record high due to ongoing concerns about supply disruptions.
The Brent crude futures price fell $3.10, or 2.9%, to $104.53 per barrel at 1:25 pm CDT (1825 GMT). West Texas Intermediate (WTI) crude dropped $2.23, or 2.9%, to $100.25 a barrel.
The price reversal occurred after the Financial Times reported that foreign ministers in the Middle East were working on a temporary deal with Iran to manage shipping through the Strait of Hormuz. This news tempered traders' earlier concerns about prolonged supply disruptions.
Despite this, analysts remain cautious about potential risks to oil prices. Phil Flynn, senior analyst at Price Futures Group, noted that 'the question is will the market remain calm over the weekend? That's when things seem to happen.'