Crude oil futures slipped for the third consecutive day to finish off the trading week as investors wait for new updates in the war in Iran. President Donald Trump had been teasing an announcement, leaving prices stuck above $100 per barrel.
October West Texas Intermediate (WTI) crude oil futures declined $0.36, or 0.35%, to $101.55 per barrel at 12:00 GMT on Friday on the New York Mercantile Exchange. US crude is on track for a weekly gain of 1.4% and is up almost 77% year-to-date.
Brent, the global benchmark for oil prices, eased below $104 a barrel. November Brent crude futures fell $1.49, or 1.42%, to $103.33 per barrel in overseas trading. Brent prices are poised for a weekly loss of 1%, but remain up 70% this year.
Fresh strikes between Saudi Arabia and Yemen’s Iran-backed Houthis added pressure on global energy markets, as the attacks could further impact regional supply chains. This was partially offset by reports that Riyadh put together alternative routes to deliver some crude shipments to Asian buyers through Oman.
With Saudi Arabia improving its logistics, investors are reassessing current market conditions in the Middle East. The kingdom has been crafting measures to restore its East-West pipeline that ships oil to Asia.
But the Iranian conflict, which is approaching its seventh week, continues to leave global oil markets vulnerable.
Meanwhile, all eyes are on the White House, with President Trump telling Axios on Thursday that he is considering “annihilating” the regime.
“I have a big decision coming up. Do I want to go in and annihilate them [the Iranian regime] or do I not?” Trump said.
Additionally, the administration will permit an Iranian delegation to attend next week’s United Nations General Assembly in New York. “I want to find out where they are and how they are doing. We have been very protective of them,” Trump said.
The meeting could serve as a significant opportunity to restart formal negotiations after both sides ended talks due to the collapse of June’s Memorandum of Understanding.
In other energy commodities, October natural gas futures tumbled $0.04, or 1.35%, to $2.86 per million British thermal units (Btu). October gasoline futures dropped $0.0765, or 2.18%, to $3.4308 a gallon. October heating oil futures dipped $0.0184, or 0.38%, to $4.8706 per gallon.