Oil prices pull back from weekly highs as diplomatic headlines emerge, even as US diesel costs hit record levels amid ongoing geopolitical tensions and refinery outages.
US diesel average price hit a record high above $6 per gallon due to Gulf shipping disruptions and Russian refining outages.
Brent crude fell on Friday but remains on course for a weekly close above $100 amid supply disruptions and geopolitical tensions.
WTI declined but holds above $100, with analysts noting near-term upside risks from Middle East supply constraints.
Brent and WTI crude futures retreated on Friday following reports of potential diplomatic talks regarding shipping through the Strait of Hormuz. Despite the daily decline, both benchmarks remain on track for a weekly gain exceeding 10%, while US diesel prices surged to a record high of $6 per gallon due to persistent supply chain disruptions.
Prices retreated following reports that Middle Eastern foreign ministers are seeking a temporary agreement with Iran to secure shipping routes through the Strait of Hormuz.
Diesel prices are surging due to a combination of Gulf shipping constraints and reduced output from Russian refineries damaged by recent attacks.