Oil prices edged lower after Oman stated that operations at the Mina Al Fahal port were proceeding normally, following media reports of an explosion that had allegedly halted loadings.
As of 07:04 GMT, Brent crude futures were down 24 cents, or 0.25%, at $94.79 a barrel, after settling down 2.84% in the previous session. U.S. West Texas Intermediate crude was at $92.48 a barrel, down 56 cents, or 0.6%, after falling 3.1% on the previous trading day.
Despite the recent dip, prices are on track for their first weekly gain in three weeks, with WTI up over 6% for the week, driven by renewed conflict in the Middle East. The resumption of hostilities comes as peace talks between the U.S. and Iran stall, and transit through the Strait of Hormuz, a conduit for a fifth of the world's oil, remains constrained.
Oman's Petroleum Development Oman said on Friday that operations at the Mina Al Fahal port were normal. This statement came after sources told media that oil loadings had been suspended following an explosion near a berth at the port. The terminal handles daily crude exports of 800,000 to 900,000 barrels from Oman.
Analysts have also noted that declining global oil inventories could trigger a price surge in the third quarter.
In a related development, the leader of Lebanon's Hezbollah, Naim Qassem, rejected on Thursday a U.S.-brokered ceasefire deal between Israel and the Lebanese government. Iran has made a Lebanon ceasefire a condition for any peace agreement with Washington. U.S. President Donald Trump stated on Thursday that he believed progress was being made between Israel and Lebanon and that Lebanon deserved peace.
Market analysts pointed out in reports that any optimism remains clouded by a complex mix of news. From a technical perspective, as long as WTI crude holds above its trendline support in the low-$80s, the risk remains skewed to the upside.
Despite the conflict in the Middle East and the closure of the Strait of Hormuz, OPEC Secretary General Haitham Al Ghais said on Thursday that OPEC is maintaining its forecast for oil demand growth of 1.2 million barrels per day this year. According to shipping data, Iranian oil exports have fallen to a six-year low, primarily due to a U.S. maritime blockade, although weak demand from China has also weighed on prices.
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