Oil on track for weekly loss even as Iran tensions simmer

Oil prices eased on Friday, putting the market on course for a weekly drop that would end a two-week rally. Brent futures traded at $89.10 a barrel after shedding 0.67%, while WTI was 0.77% lower at $82.89. For the week, Brent is set to fall 5.3% and WTI 4.3%.

Oil had risen in the previous session after reports that the Trump administration is not interested in going back to the June memorandum with Tehran. The Wall Street Journal, drawing on sources, reported that Washington has repeatedly signalled to mediators it will not revive the deal, complicating efforts to restart talks. On Thursday, Washington ruled out negotiations with Tehran, even as other countries worked to bring both sides back together. Washington had also announced sanctions on Monday that it described as the toughest in history.

Goldman Sachs estimated Gulf exports at 15 million to 16 million barrels per day recently, which is 7 million to 8 million below pre-war levels but 5 million to 6 million above the March low. ING analysts said more crude appears to be moving through the Strait of Hormuz, with producers growing more at ease navigating the waterway.