Oil prices set for 8% weekly gain despite Friday drop; US diesel reaches record high
Brent crude futures retreated during the trading session but remain on track for an 8% weekly increase due to supply fears. Meanwhile, US diesel prices hit a record high amid Middle East shipping disruptions.
Oil prices fell Friday but remain projected to gain over 8% weekly as Middle East supply concerns persist. Brent crude dropped $3.10 (2.88%) to $104.53 per barrel. U.S. West Texas Intermediate crude lost $2.23 (2.85%), closing at $100.25 per barrel. Both benchmarks reached their highest levels since mid-May during the session. The drop follows early market gains triggered by escalation in shipping attacks Thursday. Traders are now re-evaluating risk after reports that foreign ministers are negotiating a temporary deal to manage Strait of Hormuz traffic. Analyst Phil Flynn noted panic is easing, asking if calm will last over the weekend. UBS energy analyst Giovanni Staunovo observed new talks weigh moderately on current prices while warning of continued volatility and near-term upside risks. Concurrently, US diesel prices hit a record high as ongoing shipping route attacks stoke concerns about prolonged supply disruptions.
