Key points
- Brent was flat at $105.92 and WTI fell 0.2% to $97.75 on Friday.
- Brent is up 1.2% on the week and WTI up 6.5%.
- European diesel margins fell nearly 2% to $78.67 after the IEA release.
Oil prices steadied on Friday and were heading for weekly gains as uncertainty over Middle East supplies and a larger-than-expected draw from US crude stockpiles supported the market.
Brent crude futures were flat at $105.92 a barrel at 1311 GMT, while US West Texas Intermediate futures fell 22 cents, or 0.2%, to $97.75.
So far this week, Brent has risen 1.2% and WTI 6.5%. WTI settled up more than 3% on Thursday after a big US crude stock draw tied to hurricane production shut-ins.
“The relative stability reflects a market caught between persistent supply disruption risks in the Middle East, where attacks on ships in and around the Strait of Hormuz continue to underpin prices,” said Saxo Bank analyst Ole Hansen.
Hormuz attacks intensify
Attacks around the strait surged over the past 10 days. Iran said it was stepping up strikes in response to the US blockade of its ports and tougher sanctions introduced last month.
Kpler analysts said the intensified attacks drove Gulf crude flows sharply lower and expect a slower, more uneven recovery without a comprehensive political deal.
Diesel and sanctions
European diesel refining margins fell nearly 2% to $78.67 a barrel after the IEA agreed Thursday to release more than 20 million barrels of diesel. Margins had risen as high as $95 in September because of the wars in Ukraine and Iran.
Hansen said the IEA’s pledge to release the remaining 100 million barrels under its March agreement is unlikely to ease diesel tightness.
Meanwhile, Washington is considering lifting sanctions on some shadow fleet tankers to cut record freight rates.
The talks follow Trump’s temporary lifting of sanctions on Russian diesel, which drew criticism from Ukrainian President Volodymyr Zelenskiy, European countries and some Republicans.
