Oil slips to $105 amid Middle East conflict, supply concerns

Brent crude was trading 0.64% lower at $105.24 a barrel early on Friday, according to data from Mettis Global. West Texas Intermediate (WTI) fell $2.22, or 2.27%, to $95.75 a barrel by 11:05 am PST. The decline followed a gain of more than 3% in WTI on Thursday, when U.S. crude stocks fell sharply.

On Thursday, the International Energy Agency (IEA) approved releasing over 20 million barrels of diesel, plus leftover crude from March's record emergency stockpile release, to bolster supply and cool a steep price rise. Haitong Futures, in its Friday note, said the overnight rally showed traders were still unhappy with those measures. The firm added that easing regional tensions would do more to relieve crude, according to CNBC.

Separately, the Trump administration is weighing lifting sanctions on some shadow fleet vessels that move oil from Russia, Iran and Venezuela. A U.S. official said the aim is to cut freight rates that have reached record highs. The talks come after a temporary halt to sanctions on Russian diesel, a step that drew objections from Ukrainian President Volodymyr Zelenskiy, European governments and several Republican senators. Meanwhile, fighting between Saudi Arabia and Yemen's Houthis, along with renewed attacks on shipping, kept crude prices supported.