Oil prices were generally stable on Friday as the market assessed the possibility of a new escalation in relations between the United States and Iran amid signs of recovering supplies from the Middle East this week. Reuters reports, UNN writes.
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The price of Brent fell by 3 cents, or 0.03%, to $102.28 a barrel as of 03:50 GMT, after a slight increase at the start of Friday’s trading. At the same time, the contract remained on track for a weekly decline of approximately 2%, despite rising by more than $4 by the close of Thursday’s session.
Meanwhile, the price of West Texas Intermediate fell by 19 cents, or 0.2%, to $92.68 a barrel. For the week, it was expected to rise by approximately 0.3%.
KCM Trade chief analyst Tim Waterer noted that the market was analyzing clearly conflicting signals this week, adding that after a turbulent Thursday, traders were "just taking a breather."
A more optimistic outlook for Saudi Arabia’s exports is being offset by reports that another U.S. aircraft carrier is heading toward the Persian Gulf, as well as China’s decision to limit exports of petroleum products
In the previous session, prices ended trading higher after Reuters reported that Chinese refineries had suspended petroleum product exports in October as Beijing seeks to preserve domestic stocks.
At Equinor’s Johan Sverdrup oil field platforms and the Haven residential jack-up drilling rig in the North Sea, Norway, December 3, 2019.
Meanwhile, The Wall Street Journal reported that the United States is sending a third aircraft carrier and up to 10,000 additional troops to the Middle East as President Donald Trump considers resuming strikes on Iran after the U.S. midterm elections.
The most immediate concern is the availability and movement of Middle Eastern crude oil and petroleum products to the rest of the world
According to Sachdeva, the $100-a-barrel mark has now become a psychological threshold and an important benchmark for market positioning. She added that the market is "increasingly factoring in a scenario in which supply chains remain vulnerable for a longer period."
Meanwhile, the Trump administration has urged Germany and France to reduce their emergency diesel stocks to help contain the sharp rise in global fuel prices, or face the possible imposition of a U.S. ban on diesel exports, three people familiar with the negotiations said.
A source told Reuters that the United States had asked the EU to release 120 million barrels of diesel fuel over the next six months. EU countries hold nearly 109 million tonnes of emergency crude oil and fuel stocks.