Oil prices edged lower on Friday as investors weighed tensions in the Middle East and waited for possible US action to ease restrictions on the global “shadow fleet” of oil tankers.
Brent crude futures fell 41 cents, or 0.39%, to $105.51 a barrel, while US West Texas Intermediate crude dropped 54 cents, or 0.55%, to $97.43 a barrel.
US crude prices had risen more than 3% in the previous session after data showed a significant drop in US crude oil inventories. Brent crude ended that session with little change.
Meanwhile, the International Energy Agency agreed on Thursday to release more than 20 million barrels of diesel into the market, along with any remaining supplies from emergency reserve releases announced in March. The move aims to increase fuel supplies and limit further price increases.
Haitong Futures said in a Friday note that oil prices had risen during overnight trading in the previous session, suggesting investors remain unconvinced that the measures taken so far will be enough to ease supply concerns.
The company said reducing tensions in the Middle East remains the most important factor in calming oil markets. Investors continue to monitor geopolitical developments and their potential impact on global oil supplies and prices.
