Oil set for sharp weekly drop but Middle East supply concerns provide floor

Oil prices are heading for a sharp weekly fall as US election results raised expectations that the Iran war could de-escalate. The drop has been tempered by renewed concern that attacks in the Gulf could disrupt Middle Eastern oil supplies.

Brent rose 1.6 per cent to $99.86 a barrel on Friday, while US crude gained 1.22 per cent to $91.62. Even after two days of gains, Brent and US crude were each on track to lose about 12 per cent for the week; tanker attacks near the Strait of Hormuz, where oil flows are below 60 per cent of capacity, have reinforced supply worries.