Oil prices experienced a slight decline after Oman announced that operations at the Mina al Fahal port were running normally, contradicting an earlier Reuters report which indicated that oil loadings had been halted due to an explosion.
As of 0704 GMT, Brent crude futures dropped by 24 cents, or 0.25%, settling at $94.79 a barrel, following a significant 2.84% decrease in the previous trading session.
Meanwhile, U.S. West Texas Intermediate (WTI) crude traded at $92.48 a barrel, down 56 cents, or 0.6%, after a 3.1% decline on Thursday.
Both crude oil contracts are on track to achieve their first weekly increase in three weeks, with WTI rising over 6%. This uptick occurred amidst escalating tensions in the Middle East and prolonged U.S.-Iran negotiations, even as maritime traffic in the Strait of Hormuz, a critical passage for one-fifth of the world’s oil supply, remains constrained.
Petroleum Development Oman confirmed on Friday that operations at the Mina al Fahal port are normal, despite earlier reports from three sources indicating that oil loadings had been suspended due to an explosion near the loading berths.
The terminal is responsible for exporting between 800,000 and 900,000 barrels of crude oil daily.
Market analysts have expressed concerns regarding dwindling global oil inventories, which could potentially lead to a price surge in the upcoming third quarter.
On Thursday, Hezbollah leader Naim Qassem dismissed a U.S.-mediated proposal aimed at halting hostilities between Israel and Lebanon. Iran has stated that a ceasefire in Lebanon is a prerequisite for any peace agreement with the United States.
U.S. President Donald Trump commented on Thursday that he sees progress being made between Israel and Lebanon, and he emphasized that Lebanon deserves peace.
“Any optimism remains heavily clouded by a complex array of conflicting reports,” noted IG market analyst Tony Sycamore in his commentary.
He added, “From a technical standpoint, as long as WTI crude oil stays above the trendline support in the low $80s, the risks appear to be tilted toward the upside.”
OPEC continues to maintain its forecast for oil demand growth at 1.2 million barrels per day for this year, according to Secretary General Haitham Al Ghais, despite ongoing conflicts in the Middle East and the closure of the Strait of Hormuz.
Shipping data indicates that Iranian oil exports have plummeted to their lowest levels in six years, primarily due to the U.S. naval blockade, coupled with weak demand from China, which has further suppressed oil prices.
