Oil prices fall as markets look to Iran truce, but remain wary of attacks on oil facilities
USO•Brent fell 0.69% to $105.85 a barrel and WTI declined 0.86% to $93.80 as traders weighed possible US-Iran talks against attacks on Saudi Arabia. Negotiators are exploring a phased path that could reopen the Strait of Hormuz.
1. Prices ease after volatility
Oil prices fell slightly on Friday after a volatile week in which both contracts rose as much as 5% on Thursday. Brent settled up 3.4%, while WTI gained 2.7%; WTI was down 6.42% for the week, while Brent was up 2.09%.
2. Talks and attacks
US and Iranian negotiators in New York are exploring a phased path out of the war that would involve Tehran reopening the Strait of Hormuz and Washington lifting its economic blockade of Iran, sources close to the talks said. Saudi Arabia said it intercepted six ballistic missiles fired by Yemen's Iran-backed Houthis, targeting the Taif province and Yanbu area.
3. Supply risks remain
Around a fifth of the world's oil and gas shipments have been curtailed since the war began at the end of February, pushing oil prices up 50% in March. Saudi Arabia is increasing crude pumping through its East-West Pipeline to Yanbu, but crude tanker loadings have yet to resume.
