Oil Prices Retreat Amid Diesel Reserve Release Hopes and Geopolitical Tensions

Oil prices retreated on Friday as expectations of a potential diesel reserve release in Europe eased concerns over tight refined-product supplies. However, renewed geopolitical tensions in the Middle East limited losses.

The International benchmark Brent crude futures for December delivery decreased by 1.6% to $101.32 per barrel at 10:07 am local time (0707 GMT), down from $103 at the previous close. US benchmark West Texas Intermediate (WTI) crude futures for November delivery fell by 1.4% to $91.65 per barrel from $93.

US President Donald Trump suggested that Europe may release some of its diesel reserves as part of efforts to bring down fuel prices. He stated, 'We may do that. They have some diesel. The prices are coming down. All prices are coming down.'

The proposal calls for a coordinated release of 120 million barrels of diesel from EU countries' national strategic reserves over 180 days, equivalent to more than one-third of the bloc's total diesel reserves of around 315 million barrels.