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EMEA Oil Update: Brent Edges Above $100 as US-Iran Deal Doubts Lift Prices

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-- Brent crude futures edged up on Friday as doubts surfaced regarding a potential US-Iran peace deal.

The Brent futures contract gained 0.4% to $100.46 per barrel. Murban closed at $96.66 on May 7 and was not trading as of the time of publishing this oil price update. For the week, both contracts are still headed for weekly losses.

"Crude oil prices suffered a rollercoaster rise as doubts emerged over US-Iran peace negotiations," ANZ analysts said.

Despite earlier optimism, reports of explosions near Bandar Abbas and renewed friction over Strait of Hormuz naval escorts pushed prices higher, overriding the impact of tightening US inventories, analysts noted.

On the supply side, fundamental data confirms that the prolonged obstruction of the Strait is severely taxing global reserves.

US Energy Information Administration data released Wednesday showed a 2.3-million-barrel drawdown in domestic crude stockpiles.

This depletion is largely a result of American refineries utilizing domestic oil to compensate for international shortages, market experts said.

"Demand for US crude remains strong, with exports sitting at 4.75mb/d," ANZ noted.

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