Oil set for second weekly rise as unsettled US-Iran war crimps supply

Oil prices edged lower on Friday but remained on course for a second straight weekly gain, according to Business Recorder, as the unsettled US-Iran war kept supply from the Middle East under pressure. Brent slipped 23 cents to $93.55 a barrel in early trading, after a 2.4 per cent rise in the previous session, while WTI eased to $86.50.

Over the five sessions before Friday, Brent advanced more than 7 per cent and WTI rose over 8 per cent, both reaching their highest since 24 July. Prices have firmed on fears that the inconclusive conflict will keep output from major producers such as Saudi Arabia, Iraq, the UAE and Kuwait constrained. A peace understanding between the parties lapsed this week with neither side moving to resume talks, and US President Donald Trump has threatened economic retaliation against countries backing Iran.

BMI, part of Fitch Solutions, said it will revisit its Brent outlook later this month and sees the risks skewed to the upside. The research firm pointed to strained exports through the Strait of Hormuz, where Iran has shut the waterway and the US has imposed a naval blockade, along with Houthi restrictions in the Red Sea. On Thursday only seven commodity vessels transited Hormuz, half the previous day's count, according to ship-tracker Kpler.