Brent crude prices pared gains from the previous session and fell nearly $2 on Friday after the White House delayed a decision on US involvement in the Israel-Iran conflict, but they were still poised for a third straight week in the black.
Brent crude futures fell $1.89, or 2.4 per cent, to $76.96 a barrel by 0255 GMT. On a weekly basis, it was up 3.8 per cent.
The US West Texas Intermediate crude for July – which did not settle on Thursday as it was a US holiday and expires on Friday – was up 53 cents, or 0.7 per cent, to $75.67. The more liquid WTI for August rose 0.2 per cent, or 17 cents to $73.67.
Prices jumped almost 3 per cent on Thursday as Israel bombed nuclear targets in Iran, and Iran fired missiles and drones at Israel after hitting an Israeli hospital overnight. The week-old war between Israel and Iran showed no signs of either side backing down.
Brent futures trimmed previous session gains following the White House’s comments that President Donald Trump will decide whether the US will get involved in the Israel-Iran conflict in the next two weeks.
“Oil prices surged amid fears of increased US involvement in Israel’s conflict with Iran. However, the White House press secretary later suggested there was still time for de-escalation,” said Phil Flynn, analyst at The Price Futures Group.
Iran is the third-largest producer among members of the Organization of the Petroleum Exporting Countries, extracting about 3.3 million barrels per day of crude oil.
About 18 million to 21 million bpd of oil and oil products move through the Strait of Hormuz along Iran’s southern coast, and there is widespread concern the fighting could disrupt trade flows in a blow to supplies.
“The “two-week deadline” is a tactic Trump has used in other key decisions. Often these deadlines expire without concrete action,.. which would see the crude oil price remain elevated and potentially build on recent gains,” said Tony Sycamore, analyst at IG.
