Oil Prices Slip but Remain Above $100 as Supply Disruptions Persist
Oil prices dropped on Friday but still managed to end the week above $100 a barrel for the first time since mid-May. U.S. diesel prices, however, hit a record high due to prolonged supply disruptions along key Middle East shipping routes.
The Brent crude futures fell $1.65 or 1.53 percent to $105.98 a barrel by 3:58 a.m. ET, while U.S. West Texas Intermediate crude dropped $1.36 or 1.33 percent to $101.12 a barrel.
Analysts attributed the decline in oil prices to reports of possible new talks between foreign ministers in the Middle East and Iran to manage shipping through the Strait of Hormuz.
The Strait of Hormuz, which handles about one-fifth of global daily oil and liquefied natural gas supplies, has seen a significant decrease in vessel transits due to the ongoing conflict. According to preliminary ship-tracking data, only seven vessels passed through the strait on Thursday, down from 11 the previous day.
Iran's attacks on ships near the Strait of Hormuz have raised concerns about prolonged supply disruptions, which could impact global oil markets. The U.S. national average diesel price has surpassed $6 a gallon for the first time ever, according to GasBuddy.