HOUSTON: Oil prices fell on Friday but remained on course for a weekly gain of more than 9 per cent, while US diesel prices hit a record high as attacks along Middle East shipping routes stoked concerns about prolonged supply disruptions.
Brent crude futures were down $2.46, or 2.29pc, at $105.17 a barrel at 11:33am (1633 GMT).
US West Texas Intermediate crude fell $2.44, or 2.38pc, to $100.04 a barrel. Both benchmarks hit their highest levels since mid-May earlier in the session.
Both reversed early gains after the Financial Times reported that Middle East foreign ministers are trying to work out a temporary deal with Iran to manage shipping through the Strait of Hormuz.
On Thursday, Brent and WTI rose more than 6pc after shipping attacks in the region escalated. But on Friday, traders were re-evaluating the risk.
