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Oil falls but head for 8% weekly gain on tight supply; US diesel hits record

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Oil falls but head for 8% weekly gain on tight supply; US diesel hits record
AI Summary

Oil prices retreated on Friday following reports of potential diplomatic talks regarding shipping routes in the Middle East, though prices remain up 8% for the week. Concerns over supply disruptions persist as U.S. diesel prices reach record highs.

Why it matters

Energy market volatility directly impacts global inflation and economic stability, particularly as geopolitical tensions threaten supply chains.

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FILE PHOTO: A drone view of a pump jack and drilling rig south of Midland, Texas, U.S. June 11, 2025. REUTERS/Eli Hartman/File Photo

HOUSTON, Sept 11 : Oil prices fell on Friday but remained on course for a weekly gain of more than 8 per cent, while U.S. diesel prices hit a record high as attacks along Middle East shipping routes stoked concerns about prolonged supply disruptions.

Brent crude futures settled at $104.61 a barrel, down $3.02, or 2.81 per cent.

U.S. West Texas Intermediate crude finished at $100.05 a barrel, down $2.43, or 2.37 per cent. During the session, both benchmarks hit their highest levels since mid-May.

Both reversed early gains after the Financial Times reported that foreign ministers in the Middle East are trying to work out a temporary deal with Iran to manage shipping through the Strait of Hormuz.

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