Oil Prices Fall as Truce Prospects Weigh Against Facility Attack Risks
Oil prices declined on Friday as markets weighed the prospects of a truce between the US and Iran against the risk of attacks on oil facilities. The Brent crude price fell by $0.87, or 0.82%, to $105.73 per barrel at 0212 GMT, while West Texas Intermediate (WTI) dropped by $1.56, or 1.65%, to $93.05 a barrel.
The decrease in oil prices comes after a week of volatility when prices rose to a one-week high on Thursday. The Brent contract settled up 3.4% and WTI was 2.7% higher, with Brent notching its highest close since September 15.
Tim Waterer, chief analyst at KCM Trade, said the wide spread between Brent and WTI reflects different regional risk profiles. He noted that US and Iranian negotiators are exploring a phased path out of war, which could involve Tehran reopening the Strait of Hormuz and Washington lifting its economic blockade on Iran.
Saudi Arabia intercepted six ballistic missiles fired by Yemen's Iran-backed Houthis, thwarting attacks on critical oil assets in the southern province of Taif and the Yanbu area on the Red Sea. Waterer said ongoing attacks serve as a reminder that oil facilities remain firmly in the firing line.