Brent and WTI Prices Slip in Early Trading
Oil prices edged lower on Friday as investors weighed continued tensions in the Middle East against possible US policy changes affecting oil transportation. The market was also assessing measures intended to increase available fuel supplies and ease pressure on prices.
Brent crude futures fell 41 cents, or 0.39%, to $105.51 a barrel by 0012 GMT. US West Texas Intermediate crude futures declined 54 cents, or 0.55%, to $97.43 a barrel.
The moves followed a stronger session for WTI on Thursday, when the contract settled more than 3% higher. A large decline in US crude inventories had supported prices during that session, while Brent ended little changed.
Emergency Oil Releases Aim to Ease Supply Pressure
The International Energy Agency agreed on Thursday to release more than 20 million barrels of diesel, along with any oil remaining from a record emergency-reserve release pledged in March.
The measures were intended to increase supply and cool rising prices. However, the initial market response suggested that investors remained concerned about the broader supply outlook.
Haitong Futures said oil prices had risen overnight during the previous session, indicating that investors were dissatisfied with the measures. The firm said a reduction in Middle East tensions would be more effective in easing the oil market than supply measures alone.
US Considers Changes Affecting Shadow-Fleet Tankers
A US official said Washington was considering easing restrictions on so-called shadow-fleet tankers that have transported oil from sanctioned countries, including Russia, Iran and Venezuela. The discussions were taking place as global freight costs remained high.
The possible change follows President Donald Trump’s temporary lifting of sanctions on Russian diesel fuel. That decision drew criticism from Ukraine, European leaders and some US lawmakers.
The oil market continues to weigh the possibility of additional supply against the risk of further disruption in the Middle East. The reported prices represent early trading on Friday and should not be interpreted as final settlement prices for the day.
