Oil Prices Ease on Friday but Head for Weekly Gain as Middle East Supply Worries Persist

TLDR

• Brent crude fell 0.44% to $105.45 and WTI fell 0.63% to $97.35 on Friday, but both are on track for weekly gains.
• WTI is up about 6% this week after a big draw in US crude stocks.
• Iran says it is stepping up strikes near the Strait of Hormuz, and Hormuz flows were about 68% of the baseline.
• The IEA agreed to release more than 20 million barrels of diesel, and European diesel margins fell nearly 2%.
• The US is considering easing sanctions on some shadow fleet vessels to lower freight rates.

---

Oil prices slipped on Friday but are still on track for a weekly gain. Traders are watching supply risks in the Middle East and a large drop in US crude stocks.

Brent crude futures fell 47 cents, or 0.44%, to $105.45 a barrel by 0747 GMT. US West Texas Intermediate futures fell 62 cents, or 0.63%, to $97.35.

Weekly Gains Led by US Crude

WTI settled up more than 3% on Thursday after a big draw in US crude stocks. Hurricane-related production shut-ins played a part.

Oil is surging as US crude inventories post their biggest draw since the start of the war.

– Expected: +0.2 million barrels
– Actual: -8.5 million barrels

We were promised that Hormuz flows had returned to pre-war levels… Instead, we got a massive inventory draw.

We are… pic.twitter.com/bb2CTeUu9t

— Lukas Ekwueme (@ekwufinance) October 15, 2026

For the week so far, WTI has risen 5.9%, while Brent is up 0.72%. Investing.com put the WTI gain at 6.2% and Brent at 0.9%.

ING analysts said uncertainty in the Middle East and worries about oil flows through the Strait of Hormuz have the market pricing in a risk premium. They said a deal between the US and Iran would give the market more confidence.

Iran says it is stepping up strikes near the Strait of Hormuz. It cited the US blockade of its ports and tougher sanctions introduced last month.

Ship tracking firm Kpler said Hormuz clearance averaged 11.62 million barrels per day over the seven days to October 13. That is about 68% of the 17.15 million bpd baseline.

Kpler analysts said stronger Iranian attacks pushed Gulf crude flows sharply lower. They expect a slower and more uneven recovery without a full political deal.

Diesel Releases and Sanctions Talks

European diesel refining margins fell nearly 2% to $78.67 a barrel on Friday. The drop followed the International Energy Agency’s decision to release more than 20 million barrels of diesel.

Those margins rose as high as $95 a barrel in September. Diesel supply tightened because of the wars in Ukraine and Iran.

The IEA also signaled it will speed up releases from an emergency reserve pledged in March. It warned that global diesel markets could stay tight well into 2027 and forecast a drop in global oil demand this year.

A US official said the Trump administration is considering lifting sanctions on some shadow fleet vessels. The aim is to cut record global freight rates.

These vessels have carried oil from countries such as Russia, Iran and Venezuela. It was not immediately clear whether the plan would go ahead.

Days earlier, President Donald Trump temporarily lifted sanctions on Russian diesel fuel. Ukrainian President Volodymyr Zelenskiy, European countries and some Republicans criticized the move.

In Yemen, the Houthis fired missiles at the presidential palace complex in Aden on Thursday, killing two guards. The Saudi-led coalition detailed dozens of attacks on Saudi infrastructure.

Ukraine said it will resume attacks on Moscow’s energy infrastructure. The IEA said Middle East crude exports reached about 75% of prewar levels in September.

Trump also said Washington was considering more military action against Iran after the November 3 midterm elections.