By Helen Clark
PERTH, Sept 25 (Reuters) – Oil prices fell slightly on Friday as markets weighed the possibility of a truce between the US and Iran against the bombing of Saudi Arabia by Houthi rebels after a week of price spikes.
Brent was down 74 cents, or 0.69%, to $105.85 a barrel at 0032 GMT, while West Texas Intermediate (WTI) was down 81 cents, or 0.86%, at $93.80 a barrel.
The sluggish opening was a contrast to a week of volatility when oil prices rose to a one-week high on Thursday. Both contracts rose as much as 5%. Brent settled up 3.4% and WTI was 2.7% higher.
Brent notched its highest close since September 15. It was the first rise in days for WTI, which was down 13% over the prior six sessions and is down 6.42% for the week, compared with Brent’s 2.09% rise.
US and Iranian negotiators in New York are exploring a phased path out of war that would involve Tehran reopening the Strait of Hormuz and Washington lifting its economic blockade of Iran, sources close to the talks said this week.
“Diplomatic hopes are essentially helping oil prices weather the latest military strikes in the Middle East, with crude trading moderately softer despite the attacks,” said Tim Waterer, chief analyst at KCM Trade.
Since the war began at the end of February, around a fifth of the world’s oil and gas shipments have been curtailed, pushing up prices by 50% in March alone while driving liquefied natural gas buyers to look further afield for new, stable supplies of the super-chilled fuel.
On Thursday, Iranian President Masoud Pezeshkian said it was up to the US to choose when the Iran war will end.
“It’s America that must choose whether it wants to end this or not,” Pezeshkian said, responding to a question in an interview aired on Thursday on Fox News.
Saudi Arabia intercepted six ballistic missiles fired by Yemen’s Iran-backed Houthis, thwarting attacks on the southern province of Taif and the Yanbu area on the Red Sea, the Saudi-led coalition in Yemen said.
Ongoing attacks “serve as a clear reminder that critical oil assets remain firmly in the firing line,” Waterer said.
Saudi Arabia is building up crude pumping volumes through its East-West Pipeline that runs to its Red Sea export hub of Yanbu, although crude tanker loadings have yet to resume, according to industry sources, satellite imagery and shipping data.
(Reporting by Helen Clark; Editing by Thomas Derpinghaus)
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