Global crude oil benchmarks dipped early Friday during Asian trading hours, even as persistent Middle East supply fears and a massive drawdown in US commercial crude inventories set the market up for weekly gains.
Brent crude futures dropped 71 cents, or 0.67%, to $105.21 a barrel by 0352 GMT. US West Texas Intermediate fell 77 cents, or 0.79%, to $97.20 per barrel.
Despite the Friday morning pullback, both benchmarks remain poised for strong weekly increases. Investor concern over physical crude flows continues to escalate following recent maritime security incidents and military friction surrounding the Strait of Hormuz.
Providing structural support to crude futures is a larger-than-expected draw in US domestic oil stockpiles. The Energy Information Administration reported an 8.6-million-barrel drop last week, pointing to robust domestic refinery intake and tightening physical supplies.
Concurrently, energy markets face pressure from high tanker rates caused by Persian Gulf shipping diversions.
Meanwhile, discussions among global energy officials regarding potential emergency reserve releases continue to influence long-term pricing trajectories.
