Oil Prices Slip as Truce Talks with Iran Weigh Against Facility Attacks
Oil prices declined slightly on Friday as markets assessed the likelihood of a truce between the US and Iran, amidst concerns over attacks on oil facilities. The Brent crude price fell by $0.87, or 0.82%, to $105.73 per barrel at 2:12 GMT, while West Texas Intermediate (WTI) dropped by $1.56, or 1.65%, to $93.05 per barrel.
The recent volatility in oil prices had led to a one-week high on Thursday, with Brent rising by as much as 5% and WTI increasing by 2.7%. However, the spread between Brent and WTI remains at its widest since May, standing at $12.68.
Tim Waterer, chief analyst at KCM Trade, attributed the unusually wide spread to different regional risk profiles. He noted that fears of a US ban on diesel exports have led to a price bifurcation, as the two benchmarks usually rise and fall in tandem.