Oil Prices Soar Above $100, US Diesel Hits Record High Amid Shipping Route Fears
Oil prices slipped on Friday but remain on track to end the week above $100 a barrel for the first time since mid-May. U.S. diesel prices hit a record high as attacks along key Middle East shipping routes stoked prolonged supply disruption fears.
Brent crude futures fell $1.65, or 1.53%, to $105.98 a barrel by 0758 GMT. UBS energy analyst Giovanni Staunovo said that some headlines of possible new talks in the Middle East are weighing moderately on oil prices today.
The Strait of Hormuz handled about one-fifth of global daily oil and liquefied natural gas supplies before the Iran war began in late February. Vessel transits at the Strait of Hormuz fell to seven Thursday from 11 the previous day, well below the 10-day average of 15.
Iran-aligned Houthis seized control of Yemen's port of Mocha Thursday, posing a further threat to Red Sea traffic. Global oil supply and demand will fall further than previously thought this year due to a lack of progress in ending the Iran war, according to the International Energy Agency (IEA).