(MENAFN- The Peninsula) Oil prices diverged yesterday, with Brent hitting 4-1/2 month highs on continued fighting in Yemen while US crude fell on concerns of another upcoming stock build, though both benchmarks headed toward weekly gains.
Fighting between Yemen's warring factions raged in southern and central parts of the country and air strikes from a Saudi-led coalition hit Houthi militia forces, creating more tensions over the security of Middle East oil supplies.
A softer dollar also lent support to Brent and formed a floor beneath falling US crude prices.
Worries that crude stockpiles in the United States could hit a new record next week weighed on US crude, even as overall demand for oil and fuel products, especially gasoline, picked up ahead of the peak summer driving season.
"It's a push and pull situation with the Yemen tensions giving Brent support while US prices get pulled down as people steel themselves for another inventory rise next week," said John Kilduff, partner at New York energy hedge fund Again Capital.
Brent was up 27 cents at $65.12 a barrel by 12.15pm EDT (1615 GMT), after hitting a December 10 high of $65.80. Brent was headed for a third straight week of gains, adding nearly 3 percent this week.
US crude fell 42 cents to $57.32 a barrel, retreating from Thursday's 2015 high of $58.41. It was on track for a sixth straight weekly gain, its longest such stretch since the first quarter of 2014. Like Brent, US crude was up three percent for the week.
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