Oil prices drifted lower on Friday morning as supply concerns eased following a resumption of tanker traffic through the Strait of Hormuz, even as geopolitical tensions persisted after a vessel was struck near Oman.
As at 0055 GMT, Brent crude futures fell 19 cents or 0.25% to US$75.07 a barrel, while US West Texas Intermediate slipped 13 cents or 0.18% to US$71.79 a barrel.
Despite Thursday’s brief spike of more than 2% triggered by reports of a cargo vessel being hit near Oman, both benchmarks are still on track for weekly losses of close to 7%, reflecting a broader easing in supply disruption fears.
Market sentiment has improved after more stranded oil tankers began exiting the Strait of Hormuz, signalling a partial normalisation of flows through one of the world’s most critical oil shipping routes.
Data showed crude shipments through the strait rose this week to their highest level since the earlier US-Israel-Iran conflict escalation in February, following a ceasefire agreement that reopened the waterway. However, traffic volumes remain well below the pre-conflict daily average of around 125 vessels.
Geopolitical risk remains in focus after US officials said Iran fired on a cargo ship attempting to pass through the strait, while Iranian authorities maintained that vessel safety outside designated routes cannot be guaranteed.
IG analyst Tony Sycamore said markets will continue to monitor tanker traffic closely and assess whether renewed tensions could slow planned production increases.
Elsewhere, supply concerns were also influenced by earthquakes in Venezuela, although early assessments indicated limited damage to key oil infrastructure. Still, power disruptions have raised questions over whether output can be sustained at near pre-quake levels of about 1.2 million barrels per day.
Overall, crude markets remain sensitive to shifting geopolitical risks, even as easing supply disruption concerns currently outweigh isolated incidents in key shipping lanes.
Reuters
