Oil Prices Rebound Amid Ongoing Supply Disruptions

Oil prices fell on Friday but remained on course for a weekly gain of more than 8% as concerns over supply disruptions continued to drive up fuel costs.

The US national average diesel price surpassed $6 a gallon for the first time on Thursday, according to GasBuddy, while Brent crude futures and WTI crude oil fell by $3.45 and $2.96 per barrel respectively.

UBS energy analyst Giovanni Staunovo attributed the decline in oil prices to 'some headlines of possible new talks' in the Middle East, but cautioned that near-term risks to the upside for oil prices remain.

Satellite imagery showed smoke on Thursday in the vicinity of Saudi Arabia's East-West Pipeline, which has become a vital means for the kingdom to divert its crude exports away from the Strait of Hormuz.