Crude oil posted a modest gain as the prospect of a large wave of Russian diesel hitting the global market competed against rising supply risks, including another tanker attack in the Strait of Hormuz and a hurricane bearing down on the United States.
Brent crude rose about 0.4% to settle near $105 a barrel, after surging more than 4% on Thursday.
U.S. President Donald Trump said in a social media post that Russian President Vladimir Putin had agreed to immediately supply more than 300,000 tons of diesel to global markets. Heating oil futures at one point fell 5% in post-settlement trading, leading declines across the energy complex, as Trump's remarks cooled what had been overwhelmingly bullish sentiment.
Despite an increase in crude shipments out of the Middle East recently, futures prices still managed to rise over the week, because Iran once again attacked tankers, heightening the risk for vessels transiting the Strait of Hormuz. Meanwhile, freight rates have climbed to record highs as the tanker attacks raise the risks of moving through the waterway, and renewed conflict between Saudi Arabia and Iran-backed Houthi rebels in Yemen has added further uncertainty to the market.
"Ship-to-ship transfers now tie up more vessels, and that process can take as long as 10 days; other ships are choosing longer routes to avoid higher-risk areas," analysts including Natasha Kaneva of JPMorgan said in a report. "The math is simple: the longer each ship takes to move a cargo, the more ships are needed to move the same amount of crude."
Outside the Middle East, producers in the U.S. Gulf of Mexico have shut about 72% of crude output as Hurricane Isaias pushes toward the U.S. coast. The storm is expected to make landfall late Friday or early Saturday.
WTI November futures rose 0.4% to settle near $91.85 a barrel. Brent December futures rose 0.4% to settle near $104.72 a barrel.
Overall risk appetite improved on Friday, with the S&P 500 rising as investors began to focus on the coming U.S. earnings season. Still, elevated oil prices and Treasury yields continued to act as headwinds.
LME copper rose 1.6% to $14,540 a ton. LME aluminum fell 0.1% to $3,048.5 a ton. LME nickel rose 0.4% to $15,622 a ton. LME zinc rose 2.3% to $3,805.5 a ton. LME tin rose 3% to $53,006 a ton. LME lead rose 1.5% to $1,888 a ton.
Gold advanced for a second straight day, extending its rebound from a two-month low, as a brief easing of pressure in the U.S. bond market provided support. Spot gold rose 1.5% to $4,194.43 an ounce. Spot silver rose 2.6% to $60.7047 an ounce.