Oil prices edged higher on Friday as easing tensions in the Middle East improved market sentiment, although recovering crude supplies from Gulf producers limited further gains.
Brent crude rose 17 cents, or 0.24%, to $72.10 a barrel in early trading. US West Texas Intermediate (WTI) crude gained 14 cents, or 0.20%, to $68.83 a barrel.
Despite the modest increase, both benchmarks remained close to their lowest levels since before the recent US-Israel conflict involving Iran. For the week, Brent was down 0.02%, while WTI was up 0.12%, marking their smallest weekly movements in several months.
Traders continue to assess whether diplomatic efforts between the United States and Iran can deliver lasting regional stability, even as uncertainty remains over the durability of any peace agreement.
Oil supplies have also begun to recover as shipping through the Strait of Hormuz gradually returns to normal following the easing of regional tensions. The strategic waterway carries nearly one-fifth of global oil and liquefied natural gas shipments, making it one of the world’s most important energy transit routes.
Supply expectations also increased after Kuwait raised crude production to 1.65 million barrels per day in June from 580,000 barrels per day in May, expanding exports after the interim US-Iran peace agreement.
Meanwhile, at least five Saudi supertankers carrying a combined 10 million barrels of crude have passed through the Strait of Hormuz. Saudi Aramco has also shifted to spot pricing to accelerate crude sales to buyers in Asia, according to trade and shipping sources.
The combination of easing geopolitical risks and improving oil supplies has helped keep crude prices relatively stable, although investors remain alert to developments that could affect global energy markets.
