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Oil holds near $90 as Strait of Hormuz and Red Sea disruptions persist
Brent is set for an 8% weekly decline, but Middle East shipping risks are keeping prices around $90 a barrel as Saudi Arabia moves to build a Red Sea protection coalition.
Oil prices are holding near $90 a barrel despite a pullback that has left Brent on track for an 8% weekly loss, according to OilPrice. The outlet points to continued disruptions in two key shipping chokepoints in the Middle East, the Strait of Hormuz and the Red Sea, as a reason buyers are not fully stepping away.
OilPrice said the earlier sell-off was checked by the “reality” of two disrupted waterways, with Saudi Arabia seeking to organize a maritime coalition against Houthi attacks. It also cited an IRGC claim that it has turned around several tankers in the Strait of Hormuz, suggesting shippers may keep seeking to avoid the route for now.
The article adds that Tehran rejected Oman’s proposal for joint regional management of Hormuz, and that there are no new US-Iran talks on the agenda. OilPrice said ICE Brent is expected to end July at $90 per barrel.
OilPrice also reported company and policy developments in the same energy complex, including BP formally launching a process to sell its UK North Sea oil and gas business with about 115,000 bpd of output. It further said Saudi Arabia announced an international coalition to safeguard Red Sea shipping from Houthi attacks, joined by 13 other countries, and that a drone strike caused a fire at Egypt’s Damietta port, affecting two gas vessels.
Latest closeBrent $90.12 ▲1.2%