Oil prices retreated despite conflicting supply signals and uncertainty surrounding US-Iran developments
Oil prices eased on Friday as markets assessed supply data from the Middle East, though the potential for geopolitical tension continued to provide a floor of support.
After posting a slight gain early Friday, Brent crude fell 70 cents, or 0.7%, to $101.61 per barrel by 09:35 Turkish time (06:35 GMT). Meanwhile, WTI crude dropped 85 cents, or 0.9%, to $92.02 per barrel.
Both benchmark oil contracts are on track to end the week lower.
The market took a breather following a volatile Thursday.
Prices had closed higher in the previous session after reports that Chinese refiners were suspending oil product exports for October as part of Beijing's efforts to preserve domestic stockpiles.
A more positive export outlook for Saudi Arabia is being balanced against news of another US aircraft carrier heading to the Gulf and China's decision to restrict refined product exports.
Reports indicate that the US is deploying a third aircraft carrier and up to 10,000 additional troops to the Middle East, at a time when Trump is reportedly considering renewed action against Iran following the midterm elections.
In this context, the immediate concern centers on the availability and shipment of Middle Eastern crude oil and refined products to the rest of the world.
The $100-per-barrel level has now become a psychological threshold and a pivotal point for market positioning. Market pricing that anticipates supply chains remaining vulnerable for an extended period supports upward momentum.
Meanwhile, the Trump administration has warned Germany and France that they need to tap into emergency diesel reserves to help alleviate rapidly rising global fuel prices, cautioning that the U.S. could otherwise face a potential ban on diesel exports.
The U.S. pressure on EU nations to release oil reserves is also contributing to this balancing effect on prices.
According to sources, the U.S. has requested that the EU release 120 million barrels of diesel stocks into the market over the next six months. EU countries hold approximately 109 million tons of emergency crude oil and fuel reserves.
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