Oil set for sharp weekly drop but Middle East supply concerns provide floor

Oil futures rose for a second session on Friday, with January Brent up $1.57, or 1.6%, to $99.86 a barrel and US West Texas Intermediate gaining $1.10, or 1.22%, to $91.62, Business Recorder reported. Despite the rebound, Brent is heading for a 12% weekly decline, while WTI is poised to lose 12.1%.

Earlier losses followed expectations that the US election result could ease the conflict involving Iran, after oil prices fell 8% on Wednesday to two-month lows. Tanker attacks reported in the Gulf and Strait of Hormuz then renewed concerns about regional supply, supporting a recovery in prices. Iran said three more tankers were attacked on Thursday, while UKMTO data indicated tanker attacks remained near a record pace; flows through the strait were reported below 60% of capacity.