Oil Prices Extend Losses as Chance of U.S. Strike on Iran Recedes

Oil prices fell in Asian trade on Friday, extending losses from the previous session, as concerns about supply risks eased after the likelihood of a U.S. strike on Iran receded, Helen Clark and Trixie Yap reported for Reuters.

Brent prices have given back earlier gains but remain higher than a week ago.

Brent was down 21 cents, or 0.3%, at $63.55 per barrel, while U.S. West Texas Intermediate fell 15 cents, or 0.3%, to $59.04 per barrel at 0418 GMT.

Both Brent and WTI rose to multi-month highs this week after protests flared up in Iran and U.S. President Donald Trump signaled the potential for strikes on the nation. Brent prices were still set for a fourth week of gains.

Late on Thursday, however, Trump said Tehran’s crackdown on the protesters was easing, allaying worries about possible military action that could disrupt oil supplies.

Brent prices have given back earlier gains but remain higher than a week ago, with the decline in prices spurred by Trump’s statement that he would hold off on military strikes on Iran, BMI analysts said in a note.

“Given the potential political upheaval in Iran, oil prices are likely to experience greater volatility as markets digest the potential for supply disruptions,” they said.