Crude gains on worries about renewed US attacks on Iran

Oil Crude futures experienced a slight uptick on Friday due to heightened concerns over possible additional US military strikes on Iran. In a recent statement, US President Donald Trump indicated he would soon determine whether to seek a peace agreement or carry out additional military actions. Brent crude futures closed at $98.32 per barrel, while US West Texas Intermediate (WTI) crude closed at $90.83 per barrel.

Over the course of the week, Brent crude declined by 16.4%, and WTI fell by 12.8%. The US midterm elections, which seemed to offer some hope for potential de-escalation in the Iran conflict and additional crude exports, also sparked worries about stricter US regulations for the artificial intelligence industry, which led to a significant drop in technology stocks on Thursday.

The overall crude market is experiencing an oversupply situation, but the disparity in quality remains, as refiners are trying to utilize what they can versus what is available. Analysts pointed out that while gas Asian spot liquefied natural gas (LNG) prices eased last week, they remained close to a four-year high due to competition from Europe for supply ahead of winter and ongoing geopolitical tensions in the Middle East.

December delivery LNG prices for Asian markets averaged $31.40 per million British thermal units, a decline from $32.50 per mmBtu the previous week. Asian buyers are expected to remain cautious at the current prices, given ongoing European demand and supply concerns, and the need to determine where to direct marginal Atlantic cargoes.

In Europe, the Dutch TTF gas price settled at $27.91 per mmBtu, marking a weekly decline of 17.97% due to a perceived shift towards de-escalation from Trump and increased expectations of Qatari supply.