US oil settles under $105; geopolitics takes a toll

Reuters with
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Brent crude oil ticked higher on Friday but was headed for its second weekly decline, losing more than 3 percent after a week of diplomatic progress in Syria and Iran drained some geopolitical risk premium from the market.

U.S. crude fell, as Friday's expiration of the contract for October delivery prompted liquidation selling, traders said.

Global benchmark Brent crude was set for a big weekly drop on the partial return of Libyan output, a reduced prospect of military action against Syria and signals from Iran that it is looking for a thaw in relations with the West. It gained some support from nagging concern about Libyan output, falling U.S. crude inventories and the Federal Reserve's decision this week to maintain economic stimulus.

Brent crude for November delivery was flat near $109 a barrel. The crude benchmark has lost about 3.6 percent for the week and is on track for its steepest weekly decline since mid-June.

U.S. crude for October delivery settled down $1.72 at $104.67 a barrel.

In early September, Brent's premium over U.S. crude widened to over $8 when Libyan supplies were disrupted.

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