Oil Prices Fall Amid Diplomatic Hopes and Ongoing Attacks
Oil prices fell on Friday as markets weighed the possibility of a truce between the US and Iran against ongoing attacks on oil facilities. Brent crude was down $0.74, or 0.69%, to $105.85 a barrel at 0032 GMT, while West Texas Intermediate (WTI) was down $0.81, or 0.86%, to $93.80 a barrel.
The sluggish opening was in contrast to a week of volatility when oil prices rose to a one-week high on Thursday. Both contracts rose as much as 5%. Brent settled up 3.4% and WTI was 2.7% higher, with Brent notching its highest close since September 15.
US and Iranian negotiators in New York are exploring a phased path out of war that would involve Tehran reopening the Strait of Hormuz and Washington lifting its economic blockade of Iran. Diplomatic hopes are helping oil prices weather the latest military strikes in the Middle East, with crude trading moderately softer despite the attacks.
Ongoing attacks serve as a clear reminder that critical oil assets remain firmly in the firing line, according to Tim Waterer, chief analyst at KCM Trade. Saudi Arabia intercepted six ballistic missiles fired by Yemen's Iran-backed Houthis, thwarting attacks on the southern province of Taif and the Yanbu area on the Red Sea.