Oil prices fell on Friday after posting strong gains in the previous session, but remained above $100 a barrel amid concerns over continued disruptions to supplies and shipping in the Middle East.
Brent crude futures fell $1.65, or 1.53%, to $105.98 a barrel by 7:58 a.m. GMT, while US West Texas Intermediate (WTI) crude futures dropped $1.36, or 1.33%, to $101.12 a barrel.
Both benchmarks pared their early gains and turned lower after a report pointed to efforts to explore an interim agreement with Iran on managing maritime traffic through the Strait of Hormuz.
Brent crude had climbed to $109.97 a barrel during Friday’s trading, its highest level in nearly four months, before retreating under subsequent selling pressure.
Despite Friday’s decline, both Brent and WTI are on track for weekly gains of more than 10%, following increases of over 6% on Thursday amid mounting concerns over the security of key energy supply routes in the region.
Brent ended Thursday’s session 6.34% higher at $107.63 a barrel, while WTI rose 6.69% to $102.48, with both benchmarks recording their highest closing levels since May 19.
Oil flows through the Strait of Hormuz remain constrained, while developments related to shipping in the Red Sea have heightened concerns over wider supply disruptions, leaving markets vulnerable to sharp price swings.
Sources: Agencies
