Oil prices fell from a five-month high as traders weighed Middle East supply levels against ongoing conflict. Brent crude dropped to around $108 a barrel after a 4% Friday surge, while West Texas Intermediate settled near $101. Despite Houthi attacks on Saudi export hubs and tanker incidents in the Persian Gulf, US forces helped escort over 100 million barrels of oil through the Strait of Hormuz in the past week, signaling stable regional output.
Brent has risen more than 75% this year due to Middle East tensions and the Russia-Ukraine war. Tight physical markets and soaring diesel prices have increased inflationary pressures globally. Analyst June Goh of Sparta Commodities noted Brent is likely to remain rangebound around $100 a barrel as markets resist higher prices amid a weak global economy.
Meanwhile, former President Donald Trump announced a US-Russia diesel export deal, waiving tariffs to support peace talks. US lawmakers introduced legislation to block fuel purchases from Moscow. Russian President Vladimir Putin proposed a summit with Trump and Chinese leader Xi Jinping to end the four-year conflict, though Trump has not yet agreed to the meeting.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing