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Oil prices steadied on Friday, but headed for weekly gains amid uncertainty surrounding Middle East supplies and a larger-than-expected draw in US crude inventories, while diesel refining margins in Europe fell after the International Energy Agency moved to release additional volumes from fuel stocks.
Futures settled at $105.92 a barrel, while US West Texas Intermediate (WTI) crude futures fell 22 cents, or 0.2%, to $97.75.
WTI rose by more than 3% at Thursday's settlement following a large draw in US crude inventories amid production halts caused by a hurricane.
Since the beginning of the week, Brent rose 1.2% while WTI jumped 6.5%.
Hansen said, "Sentiment may have been slightly dented by the International Energy Agency's pledge to draw the remaining 100 million barrels under the March agreement, and by reports that the US is considering easing sanctions on some shadow fleet tankers," noting that the agency's move is unlikely to ease the tight diesel supply.
European diesel refining margins fell by about 2% on Friday to $78.67 a barrel, after the International Energy Agency agreed on Thursday to release more than 20 million barrels of it onto the market.
These margins rose to $95 a barrel in September as diesel supplies declined due to the wars in Ukraine and Iran.
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