Oil prices were little changed in early Asian trade on Friday but held near a five-month high, after rising about 4% in the previous session on concern of further energy supply disruption after Houthi attacks on Saudi Arabia, the world's top crude exporter, Reuters reported. Brent crude futures were down 21 cents, or 0.2%, at $112.96 a barrel as of 0030 GMT, while US West Texas Intermediate crude was down 27 cents, or 0.3%, at $98.12.

Source: Reuters

Brent settled on Thursday at its highest level since May 4 and is set to close higher for a third successive week, Reuters said. WTI was on track to end two weeks of gains with a lower finish for the week.

A second supply cut, in Libya

Supply losses were also reported outside the Gulf. In Libya, a pipeline valve running from the Hamada and Tahara oilfields to Zawiya port has been shut, leading to a reduction in production at both fields, the head of the National Oil Corporation told Reuters on Thursday.

A day earlier, world shares and US futures had retreated as oil jumped more than 2% following a report by Iran's state television that seven oil tankers caught fire and were damaged in the Strait of Hormuz, the Associated Press reported. AP said that if the report were verified, it would be the largest number of vessels damaged in the waterway in a single day since the start of the Iran war on February 28. Brent gained 3.2% to $112.27 a barrel in that report.

Source: Associated Press

The price spike followed an intense week in the Gulf. Saudi Aramco on Thursday ordered the evacuation of its headquarters in Dhahran as fighting intensified between Saudi Arabia and Yemen-based Houthis, Reuters reported, and clashes have raged since the Iran-aligned Houthis pushed towards Bab el-Mandeb, the shipping chokepoint at the mouth of the Red Sea.

Yaani — in simple words

Brent at $112.96 a barrel means the crude in one standard barrel (about 159 litres) costs roughly 71 US cents per litre before refining, transport and taxes — yaani, when this number jumps, diesel and petrol bills from Punjab to Canada usually follow within days.

$112.96Brent crude per barrel in early Asian trade on Friday, Reuters said
$113.17Brent's Thursday settlement — its highest close since May 4
+4%Brent's rise in Thursday's session on supply concern
2Libyan oilfields — Hamada and Tahara — where output was cut after a pipeline valve shut

On the diplomatic front, Russia said on Wednesday it was ready to resume US-mediated talks with Ukraine next month, after President Vladimir Putin hosted US envoy Steve Witkoff for talks in St Petersburg, and Ukrainian President Volodymyr Zelenskiy said he hoped negotiations — the first since February — would take place early in November, Reuters said. Russia was the world's third-biggest crude producer in 2025, and any settlement that returned more Russian barrels to the market would push prices the other way.

What is solid

  • Brent held at $112.96 a barrel in early Asian trade on Friday after settling at its highest since May 4 on Thursday (Reuters).
  • Libya's National Oil Corporation head told Reuters a shut pipeline valve has reduced production at the Hamada and Tahara oilfields.

What is only claimed

  • Iranian state television's report that seven tankers caught fire in the Strait of Hormuz — carried by AP, which said the report had not been verified.