Oil prices fall as markets weigh Iran truce, remain wary of attacks on oil facilities
USO•Brent fell 0.82% to $105.73 a barrel and WTI dropped 1.65% to $93.05 as traders weighed a possible U.S.-Iran truce against attacks on Saudi Arabia. The Brent-WTI spread widened to $12.68, its widest since May.
1. Prices slip after volatility
Oil prices fell slightly on Friday after a volatile week. Brent was down 87 cents at $105.73 a barrel, while WTI fell $1.56 to $93.05. The previous day, both contracts had risen as much as 5%.
2. Truce talks and attacks
U.S. 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 intercepted six ballistic missiles fired by Yemen's Iran-backed Houthis, the Saudi-led coalition in Yemen said.
3. Brent-WTI spread widens
The spread between Brent and WTI reached $12.68, its widest since May. Fears of a U.S. ban on diesel exports that could flood the domestic market are largely responsible for the price divergence. Saudi Arabia is increasing crude volumes through its East-West Pipeline to Yanbu, but crude tanker loadings have yet to resume.
