Oil Prices Fall but Remain on Track for Weekly Gain Amid Ongoing Supply Concerns
Oil prices fell on Friday but remain on track for an eight percent weekly gain as concerns about supply disruptions continue. Brent crude futures settled at $104.61 a barrel, down $3.02 or 2.81 percent from Thursday's close. US West Texas Intermediate crude finished at $100.05 a barrel, down $2.43 or 2.37 percent.
The decline came after reports that foreign ministers in the Middle East are trying to negotiate a temporary deal with Iran to manage shipping through the Strait of Hormuz. The development eased concerns about supply disruptions, which had driven prices up earlier in the week.
Saudi Arabia's crude supply fell by 2.3 million barrels per day in August, the lowest level in over three decades, according to the International Energy Agency. Meanwhile, US diesel prices hit a record high as attacks on Middle East shipping routes continued to stoke concerns about prolonged supply disruptions.