Oil prices slip as fears ease over Middle East supply

Oil prices declined on Friday after US President Donald Trump made comments that soothed some fears about potential disruptions to oil supplies from the Middle East.

Trump said Washington was in positive talks with Iran and would not launch an assault before the US midterm elections on Nov. 3. The statements helped dispel some of the uncertainty that had gripped oil markets.

Brent crude futures were down 72 cents, or 0.7%, at $103.53 a barrel. US oil, the West Texas Intermediate (WTI) crude, fell 52 cents, or 0.6%, to $90.97 a barrel.

Brent oil was on course for a weekly gain, even as it slipped on Friday following a 4% surge on Thursday. “Previous attacks on oil tankers in the Middle East had fanned fears of supply disruptions. WTI was seen to post a small weekly loss, however a storm heading for the US Gulf Coast also raised fears over production.

Iranian state television said Tehran was looking at the US response to a plan to re-open shipping channels in the Middle East within a week.

The United States also imposed fresh penalties against persons, networks and 17 boats accused of being involved in the transportation of Iranian crude oil, petroleum products and petrochemicals.

Oil prices have been choppy this week as markets digest geopolitical developments and threats to regional shipping. Stability in the Middle East’s maritime lanes is particularly crucial for oil markets as the region is a significant global energy-supply area.