Oil prices slipped on Friday after a sharp rise in the previous session, as traders weighed improving Middle East supply conditions against the risk of renewed tensions between the United States and Iran.
At 0635 GMT, Brent crude was down 70 cents, or 0.7%, at US$101.61 per barrel, while West Texas Intermediate fell 85 cents, or 0.9%, to US$92.02. Both benchmarks were heading for a weekly decline.
KCM Trade chief analyst Tim Waterer described the market as caught between competing signals, including stronger Saudi export prospects and renewed geopolitical risks.
“The market is taking stock of a distinctly mixed set of signals this week,” he said.
Middle East Supply Picture Improves
Oil prices had climbed on Thursday after reports that Chinese refiners suspended petroleum product exports for October as Beijing sought to preserve domestic supplies.
The move is expected to tighten availability of diesel, gasoline and jet fuel in regional markets.
At the same time, recovering Saudi exports have eased some concerns over immediate crude availability.
The market remains wary, however, after reports that Washington is sending another aircraft carrier and additional troops to the Middle East while President Donald Trump considers possible renewed military action against Iran after the November midterm elections.
US Pressures Europe Over Diesel Stocks
Attention is also turning to global diesel supplies.
The Trump administration has urged Germany and France to release emergency diesel stocks to help cool prices, with US officials signalling that export restrictions could be considered if Europe does not act.
Reports indicate Washington wants European countries to release about 120 million barrels of diesel over six months.
For traders, Brent’s return above US$100 per barrel remains psychologically significant. Analysts say the level reflects growing concern that global supply chains could remain vulnerable even as some disrupted Middle East exports recover.
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