Oil prices were heading for weekly gains as Middle East supply uncertainty and a larger-than-expected draw in U.S. crude stocks supported prices. Brent rose 1.4% and WTI 6.4% so far this week; European diesel margins fell nearly 2% after the IEA agreed to release more than 20 million barrels of diesel.
Oil prices steadied Friday and were heading for weekly gains as uncertainty over Middle East supplies and a larger-than-expected draw in U.S. crude stockpiles supported the market. At 1107 GMT, Brent was up 36 cents, or 0.34%, at $106.28 a barrel, while WTI was down 19 cents, or 0.19%, at $97.78. Brent had gained 1.4% and WTI 6.4% so far this week.
Attacks around the Strait of Hormuz surged over the past 10 days, and Iran said it was stepping up strikes in response to a U.S. blockade of its ports and tougher sanctions introduced last month. Kpler analysts said intensified Iranian attacks had sharply reduced Gulf crude flows and expected recovery in Hormuz flows to be slower and more uneven without a comprehensive political deal.
European diesel refining margins fell nearly 2% Friday to $78.67 a barrel after the IEA agreed to release more than 20 million barrels of the fuel. The IEA also pledged to release the remaining 100 million barrels under its March agreement. The article said the release was unlikely to ease diesel supply tightness.
