Oil slides as US-Iran truce hopes outweigh Houthi attacks on Saudi Arabia
USO•Oil prices fell as markets weighed possible US-Iran truce talks against Houthi attacks on Saudi Arabia. Brent was down 1.4% at $105.11 a barrel, while WTI fell 2.1% to $92.61; the Brent-WTI spread reached $12.50, its widest since May.
1. Prices fall as talks continue
Oil prices fell on Friday as markets weighed the possibility of a US-Iran truce against concerns that Houthi attacks on Saudi Arabia could disrupt supply. Negotiators are exploring a phased path out of the war that would involve Iran reopening the Strait of Hormuz and the United States lifting its economic blockade of Iran, sources close to the talks said this week.
2. Brent-WTI spread widens
Brent was down $1.47, or 1.4%, at $105.11 a barrel, while WTI fell $2, or 2.1%, to $92.61. For the week, Brent was up 1.7% and WTI was down 7.2%; the spread between the benchmarks widened to $12.50 a barrel, its widest since May. Analysts said Gulf supply constraints were supporting Brent, while higher US production and inventories were keeping WTI at a discount. Saudi Arabia said it intercepted six ballistic missiles fired by Yemen's Houthis.
