Oil prices were on course to post a second weekly decline as supply concerns eased, after US President Donald Trump signalled that he is not keen to restart the Iran war. But further attacks on ships in the region mean prices remain volatile.
Brent, the benchmark for two thirds of the world's oil, was down 0.24 per cent at $95.59 a barrel at 8.53am UAE time. West Texas Intermediate, the gauge that tracks US crude, was trading 0.54 per cent lower at $88.26 a barrel. Both Brent and WTI are set for decline of more than 2.5 per cent decline for the week, after plunging about 13 per cent last week.
Mr Trump this week indicated that he is not planning to resume the war with Iran after his Republican Party suffered heavy losses in the midterm elections. He also said on Thursday that the US was no longer looking to reach an agreement with Tehran.
“We don’t need a deal with Iran. Those days have long since passed. We’ve got their money, hundreds of billions of dollars, and we’ve got their strait,” Mr Trump said in a post on Truth Social.
But attacks continue on ships crossing the Strait of Hormuz, the global chokepoint for two thirds of global crude supply and liquefied natural gas, putting upward pressure on oil prices amid supply risks.
This week, Iran's Islamic Revolutionary Guard Corps claimed there were explosions on two supertankers carrying more than four million barrels of oil in the strait.
A tanker was also struck by a projectile while travelling east in the Arabian Gulf, with casualties reported, the UK Maritime Trade Operations agency said yesterday.
Attacks on Saudi energy infrastructure by Yemen's Houthis also pushing prices higher. Houthi spokesman Yahya Saree said that a pumping station on the kingdom's East-West oil pipeline and the Yanbu oil installation on the Red Sea coast were hit on Thursday.
Saudi Arabia has been exporting much of its crude through the pipeline since the beginning of the war, owing to disruption in the strait.
Meanwhile, gold rose on Friday after prices reached a more than one-year low in the previous session. Spot gold climbed 1 per cent to $3,917.70 per ounce at 9.55am UAE time.
Gold prices dropped below the $4,000 level as markets expect a December increase by the US Federal Reserve.
