Oil prices slide 2pc

Business Recorder reported that crude benchmarks retreated nearly 2 per cent on Friday. Brent settled at USD104.32 a barrel after shedding USD2.28, or 2.1 per cent, while West Texas Intermediate (WTI) closed at USD92.41 following a USD2.20 decline. Over the week, Brent rose by less than 1 per cent but WTI dropped about 8 per cent.

Traders balanced optimism about a possible settlement between Washington and Tehran against reports that the US may curb diesel exports. Talks in New York centre on a staged arrangement under which Tehran would reopen the Strait of Hormuz while Washington eases its economic blockade of Iran, according to people familiar with the discussions. Tehran, though, has signalled it will not move on its nuclear programme even if Washington agrees to its plan for reopening the waterway.

Houthi strikes on Saudi Arabia, which have disrupted oil supply from the kingdom, kept pressure on sentiment. Preliminary Kpler ship-tracking data showed 33.7 million barrels of crude left the Strait of Hormuz during the week beginning September 20. The Brent premium over WTI reached a level not seen since May, extending its climb for a third session, a signal that markets expect US refiners to run less crude if diesel stays at home.