Oil prices fell on Friday after surging sharply the previous day. Investors are assessing the prospects of a possible truce between the United States and Iran, which could affect energy supplies and market conditions.
According to Reuters on September 25, Brent crude fell by 87 cents, or 0.82%, to $105.73 per barrel. U.S. WTI lost $1.56, or 1.65%, trading at $93.05 per barrel.
Price movements in the previous session
During the previous trading session, both benchmark crude grades gained around 5% during the day. By the close, Brent had risen 3.4%, while WTI gained 2.7%.
Brent ended the previous session at its highest level since September 15. Its price rose 2.09% over the week.
WTI increased in price after six consecutive losing sessions. At the same time, U.S. crude lost around 13% of its value over the previous six trading days.
Difference between Brent and WTI
The spread between Brent and WTI widened to $12.68 per barrel, its highest level since May. One reason cited is concern over a possible U.S. ban on diesel fuel exports.
Such a move could increase supply on the domestic U.S. market and put pressure on WTI.
“The unusually wide gap between WTI and Brent prices also reflects different regional risk profiles”
Tim Waterer, chief analyst at KCM Trade
It became known the previous day that Iran is ready to reach an agreement to end the war before the U.S. midterm elections in November.
