Oil slides, heads for weekly gain

Business Recorder reported that oil prices slipped on Friday but were heading for a weekly gain of more than 6 percent after the United States and Iran resumed military exchanges. Brent crude fell to USD 95.29 a barrel mid-morning, down 0.24 percent, while West Texas Intermediate dropped 0.59 percent to USD 90.76. Brent was up 6.1 percent on the week and West Texas Intermediate had climbed 8.3 percent.

US diesel prices reached a record high, with Ukrainian strikes on Russian refineries adding to supply strain as the US-Iran fighting renewed. Rystad Energy's chief economist Claudio Galimberti said diesel was hitting every sector, and that rising US bond yields reflected expectations of higher inflation. Julius Baer's Norbert Rucker, however, saw no sign that this week's escalation had materially reduced Middle East exports, calling the rally largely driven by mood and fear.

Flows through the Strait of Hormuz remained disrupted, with four commodity vessels transiting on Thursday against a 10-day average of about 15. Citi lifted its third-quarter Brent average forecast to USD 86 from USD 80, citing a slower reopening of the strait, while ANZ raised its short-term Brent view to USD 95, flagging upside risk should the conflict worsen.