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Oil prices track for a 4% weekly gain amid U.S.-Iran deadlock
Brent and WTI were around $87.1 and $81.4 per barrel, helped by reduced tanker traffic through the Strait of Hormuz while U.S. officials signal the naval blockade could stay in place indefinitely.
Crude oil prices were set for a roughly 4% weekly gain as the United States and Iran signaled they are no closer to a peace deal than at the start of the war, with geopolitics continuing to outweigh weaker crude market signals, according to OilPrice. At the time of writing, Brent was trading around $87.12 per barrel and West Texas Intermediate around $81.36 per barrel. OilPrice said the rally was tied to low tanker traffic through the Strait of Hormuz, which remains at a fraction of pre-war levels. OilPrice also pointed to the U.S. threat to keep its naval blockade of Iran in place indefinitely as part of the tighter backdrop for crude logistics. Rystad Energy senior vice president for oil Susan Bell, as quoted by Reuters, said the broader geopolitical situation is preventing a sharper decline despite bearish crude stock data. Still, OilPrice noted that ING analysts highlighted an increase in U.S. commercial crude inventories of more than 17.4 million barrels for last week, which weighed on prices. The outlet added that doubts are growing about crude availability amid the ongoing U.S. and Iran war, even as the International Energy Agency and OPEC have flagged lower demand and the IEA forecast a 1.8 million barrels per day supply shortage in the current quarter.
Latest closeWTI crude $81.19 ▼2.5%|Brent $86.96 ▼2.3%