Oil Prices Dip Amid Ongoing Supply Disruptions

Oil prices dipped on Friday but are still set to record strong weekly gains amid supply disruptions caused by ongoing conflicts in the Middle East. Brent crude futures fell $3.37, or 3.1%, to $104.26 a barrel, while US West Texas Intermediate crude declined $2.99, or 2.9%, to $99.49 a barrel.

The benchmarks had earlier climbed to their highest levels since mid-May but reversed gains after the Financial Times reported that Middle Eastern foreign ministers were seeking a temporary agreement with Iran to regulate shipping through the Strait of Hormuz.

The supply disruptions have pushed fuel prices higher, with US diesel prices reaching a record high. The International Energy Agency said global oil supply and demand will decline this year by more than previously expected due to the continued lack of progress toward ending the war with Iran.