Oil prices fell on Friday as Middle East supply concerns eased somewhat after US President Donald Trump said the country will not attack Iran before US elections next month amid productive talks to end their war that has disrupted the market. 

Brent crude futures fell 72 cents, or 0.7 per cent, to $103.53 a barrel by 0220 GMT. US West Texas Intermediate (WTI) crude futures fell 52 cents, or 0.6 per cent, to $90.97.

Still, Brent prices are set for weekly gains after settling 4 per cent higher on Thursday because of an increase in attacks on shipping carrying crude out of the Middle East earlier this week. WTI is set for a slight weekly decline even amid supply disruptions due to a hurricane approaching the Gulf of Mexico coast in the US, the world's biggest oil producer.

On Thursday, Trump said Washington was having "productive discussions" with Iran and said no attack was planned before the November 3 midterm congressional elections after media reports he was considering an attack before then.

Iran's Tasnim news agency reported the same day that Foreign Minister Abbas Araqchi said Tehran is reviewing the US response to its proposal that would reopen the Strait of Hormuz within seven days.

The US is still pressuring Iran economically to try to end the war, now in its eighth month. 

The US imposed fresh sanctions on Thursday targeting individuals, networks and 17 vessels for transporting Iranian crude, oil products and petrochemicals.

Prices have been volatile this week as threats to oil shipping in the Gulf and the Strait of Hormuz, which carried shipments equal to about 20 per cent of global oil and fuel before the war, have increased in October.

The oil market is also contending with Hurricane Isaias in the Gulf of Mexico. Because of the storm, producers there have shut in about 1.3 million barrels per day, or 62.9 per cent, of current oil production as of Thursday, according to the US Marine Minerals Administration.

Source: Reuters

--Agencies