Oil Prices: Crude heads for weekly losses as Strait of Hormuz supply concerns ease

Brent and WTI decline despite security fears after a cargo vessel is struck near Oman, while traders monitor Venezuela’s oil output

Oil Prices edged lower on Friday and remained on track for sharp weekly losses as supply concerns eased after more stranded tankers exited the Strait of Hormuz, despite a reported attack on a cargo vessel near Oman.

Brent crude futures fell 19 cents, or 0.25%, to $75.07 a barrel by 0055 GMT. U.S. West Texas Intermediate (WTI) crude dropped 13 cents, or 0.18%, to $71.79 a barrel.

Both benchmark contracts had gained more than 2% on Thursday after a cargo vessel was struck by an unidentified projectile near Oman. The incident prompted the International Maritime Organization to suspend its voluntary ship evacuation programme in the region.

Two US officials told Reuters they believed Iran fired at the vessel as it attempted to transit the Strait of Hormuz. Iranian authorities responded by saying they could not guarantee the safety of ships travelling outside approved routes.

IG market analyst Tony Sycamore said investors would closely watch tanker movements and regional developments to assess whether producers could continue increasing oil exports without disruption.

Despite Thursday’s rebound, both Brent and WTI remained on course to record weekly losses of nearly 7%.

Shipping data showed that crude exports through the Strait of Hormuz reached their highest level this week since the conflict involving the United States, Israel and Iran began in February. The recovery followed a ceasefire agreement that allowed commercial traffic to resume.

However, shipping volumes remain well below the pre-conflict average of around 125 vessels passing through the strategic waterway each day.

Meanwhile, earthquakes in Venezuela have created fresh uncertainty over global oil supplies. Initial inspections indicate that the country’s major oilfields, refineries, pipelines and export terminals escaped significant damage because they are located far from the hardest-hit regions.

Even so, widespread electricity outages have raised concerns about whether Venezuela can maintain crude production at its pre-earthquake level of nearly 1.2 million barrels per day.

Energy markets continue to monitor geopolitical tensions in the Middle East and infrastructure challenges in Venezuela, as both factors could influence global oil supplies and price movements in the coming weeks.