Brent futures for June fell by 43 cents, or 0.5%, to $88.92 a barrel by 12:15 p.m. EDT. Investors are analysing macroeconomic data and monetary policy for potential clues on the outlook for oil demand.
Brent futures rose $1.52, or 1.9%, to $81.56 a barrel at 12:40 p.m. (1740 GMT). U.S. West Texas Intermediate crude gained $1.44, or 1.9%, to $76.53. Geopolitical tensions in the Middle East and the disruption of shipping in the Red Sea corridor remained in focus.
Brent futures were up a cent to $79.11 a barrel at 11:41 a.m. U.S. West Texas Intermediate crude fell 9 cents to $73.99. For the week, the U.S. benchmark is on track to rise about 2% while Brent is set to gain about 1%.
Oil prices leaped 4% on Friday, as oil tankers diverted course from the Red Sea following overnight air and sea strikes by the United States and Britain on Houthi targets in Yemen after attacks on shipping by the Iran-backed group.
While the Organization of the Petroleum Exporting Countries and allies are cutting production to bolster the market, U.S. crude production will hit a record high in 2024, the Energy Information Administration said on Tuesday.
Oil prices fell by more than 4% on Monday on sharp price cuts by top exporter Saudi Arabia and a rise in OPEC output, offsetting supply concerns generated by escalating geopolitical tension in the Middle East.
Both benchmarks are on track to end the first week of the year higher, having almost recouped their losses from Thursday triggered by hefty increases in U.S. gasoline and distillate stocks.
Oil prices slipped on Wednesday, eating into the previous day s gains as investors monitored developments in the Red Sea, where shippers are returning despite further attacks on Tuesday.