Oil Prices Slide as Truce Talks and Regional Tensions Weigh on Markets
Oil prices dropped on Friday as markets weighed the possibility of a truce between the US and Iran against the bombing of Saudi Arabia by Houthi rebels.
Brent crude was down 87 cents, or 0.82%, at $105.73 a barrel, while West Texas Intermediate (WTI) fell $1.56, or 1.65%, to $93.05 a barrel.
The slump in oil prices comes after a week of volatility that saw Brent rise to its highest close since September 15 and WTI notch its first gain in days.
Tim Waterer, chief analyst at KCM Trade, attributed the price bifurcation between Brent and WTI to fears of a US ban on diesel exports that could flood the domestic market.
The spread between Brent and WTI is the widest it has been since May at $12.68, with Waterer noting that regional risk profiles play a significant role in this divergence.