Oil treads water as market weighs mixed supply signals

Oil prices were little changed on Friday, according to Business Recorder, as traders weighed the chance of renewed US-Iran tensions against signs that Middle Eastern supplies were recovering. Brent slipped 3 cents to $102.28 a barrel by 0350 GMT, but was on course for a weekly fall of about 2% after rising more than $4 on Thursday. West Texas Intermediate eased to $92.68 a barrel.

KCM Trade's Tim Waterer described a mixed set of signals, saying a healthier Saudi export picture was being offset by reports of another US carrier moving toward the Gulf and a Chinese step to restrict fuel exports. Prices had firmed in the prior session after Reuters reported that refiners in China halted petroleum product shipments for October while Beijing sought to keep stocks at home. The Wall Street Journal reported Washington is deploying a third carrier and as many as 10,000 extra personnel to the Middle East as Donald Trump weighs renewed strikes on Iran after the midterms.

Pressure on European reserves also featured, as three people close to the talks said Washington had asked Germany and France to draw down emergency diesel stocks or risk a possible US diesel export ban. Reuters cited a source saying Washington has pressed the EU to free up 120 million barrels of diesel within six months.