Brent crude and WTI prices were shrugging off fighting in Lebanon as the market concentrates on the U.S.-Iran peace talks.
Oil prices were little changed on Friday following sharp declines in the previous session, with prospects dimming for a near-term end to the U.S.-Israeli war with Iran after the Hezbollah militia rejected a new ceasefire in Lebanon.
Oil edged lower in early trade amid mixed Middle East developments.
Buccaneer Energy Plc (AIM:BUCE, FRA:LMU1) could be approaching a re-rating as production growth and stronger cash generation begin to close the gap between the company's market value and the underlying worth of its assets. This was suggested in a new note from house broker SP Angel, which reiterated a 'buy' recommendation and 0.05p target price, arguing that the shares offer more than 350% upside to its risked net asset value.
President Donald Trump told aides that he won't resume the war unless U.S. troops are killed, according to The Wall Street Journal.
Oil prices rose Wednesday following the latest flare-up in fighting to threaten the U.S.-Iran ceasefire, and U.S. stocks retreated from their records.
Crude prices slipped on Thursday after Israel and Lebanon agreed to implement a ceasefire, with markets pricing in the possibility that the deal could unlock a broader settlement to end the wider US-Israeli war with Iran and, crucially, reopen the Strait of Hormuz. Brent futures eased towards $96.92 a barrel, while US West Texas Intermediate fell to around $95.24, paring gains accumulated over the previous two sessions when both benchmarks had risen around 2% after a fresh surge in Middle East hostilities, including Iranian drone attacks on Kuwait and US military strikes near the Strait of Hormuz itself.
Iranian oil prices slipped into discounts for the first time since April, while Russian crude premiums eased as traders cut prices to entice Chinese buyers amid sluggish demand, trade sources said.
U.S. crude oil inventories extended their decline, falling by 8 million barrels, as exports rose and refineries ran near full capacity.
WTI crude futures have risen nearly 10% in three days as hopes for a quick peace deal fade.
Kuwait could recover its oil production to almost 70% of normal levels in 6-8 weeks after the Strait of Hormuz reopens, Kuwait Petroleum Company's managing director for international marketing, Shaikh Khaled Ahmad Al-Sabah, said on Wednesday.