Shafaq News
Oil prices were broadly stable on Friday as the market weighed the possibility of renewed US-Iran tensions against signs of recovering Middle Eastern supplies this week.
Brent dipped 3 cents, or 0.03%, to $102.28 a barrel at 0350 GMT, after trading slightly higher in early Friday trade. However, the contract was poised for a weekly decline of about 2%, despite closing more than $4 higher on Thursday.
Meanwhile, West Texas Intermediate eased 19 cents, or 0.2%, to $92.68 a barrel. It was headed for a weekly increase of about 0.3%.
"The market is taking stock of a distinctly mixed set of signals this week," said KCM Trade chief analyst Tim Waterer, who noted that after a disruptive Thursday, traders were "simply taking a breather".
"A healthier-looking Saudi export picture is being offset by reports of another US aircraft carrier heading toward the Gulf and by China's decision to curb refined product exports."
Prices settled higher in the previous session after Reuters reported that Chinese refiners suspended oil product exports for October as Beijing looked to preserve domestic stocks.
Meanwhile, the Wall Street Journal reported, that the US was sending a third aircraft carrier and up to 10,000 more troops to the Middle East as President Donald Trump weighed resuming strikes on Iran after the US midterm elections.
"The more immediate concern is the availability and movement of Middle Eastern crude and refined products to the rest of the world," said Priyanka Sachdeva, head of market insights at Phillip Nova.
The $100/barrel-level has now become a psychological and market-positioning threshold, said Sachdeva, adding that the market is "increasingly pricing a world where supply chains remain vulnerable for longer".
Meanwhile, the Trump administration has told Germany and France to draw down emergency diesel inventories to help ease soaring global fuel prices or face a potential US diesel export ban, according to three people close to the discussions.
A source told Reuters that the US has asked the EU to release 120 million barrels of diesel over the next six months. EU countries hold nearly 109 million tons of emergency crude and fuel stocks.
"US pressure on EU nations to release oil is also adding to that check on prices," said Mukesh Sahdev, chief oil analyst of XAnalysts.
(REUTERS)
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