Oil eases, but set for weekly gain on Middle East supply risks
USO•Oil prices fell on Friday but remained on track for weekly gains as uncertainty over Middle East supplies and a larger-than-expected U.S. crude stock draw supported prices. Brent was down 0.47% at $105.42 a barrel, while WTI fell 0.50% to $97.48.
1. Prices ease, weekly gains persist
Brent crude futures fell 50 cents to $105.42 a barrel and U.S. West Texas Intermediate crude futures dropped 49 cents to $97.48 by 0623 GMT. Brent was up 0.49% for the week so far, while WTI had gained 5.91%.
2. Supply risks support prices
Uncertainty over Middle East supplies and concerns about flows through the Strait of Hormuz kept a risk premium in the market, analysts said. Hormuz clearance averaged 11.62 million barrels per day in the seven days to October 13, about 68% of the 17.15 million bpd baseline, ship tracking firm Kpler said. Kpler analysts expected a slower, more uneven recovery without a comprehensive political deal.
3. Stock draw and reserve release
WTI settled up more than 3% on Thursday after a large U.S. crude stock draw linked to hurricane production shut-ins. The International Energy Agency agreed to release more than 20 million barrels of diesel and any oil remaining from a record emergency-reserve release pledged in March.
