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Economy
Oil prices increased on Friday following sharp declines, as tensions persist between the US and Iran and loading at Oman's Fahal port was suspended after an explosion.
Oil prices climbed on Friday after experiencing steep drops in the previous session, following the suspension of loading operations at the Fahal port in Oman due to an explosion.
Expectations for a near-end to the US-Israeli conflict with Iran have diminished after Hezbollah rejected a new ceasefire proposal in Lebanon.
By 08:08 Abu Dhabi time, Brent crude futures rose by 33 cents, or 0.35%, to reach $95.36 per barrel, reversing a 2.84% decline recorded at the previous session's close.
Meanwhile, the price of West Texas Intermediate (WTI) crude increased by two cents, or 0.02%, to $93.06 per barrel, following a 3.1% drop on Thursday.
Both benchmarks are set to post their first weekly gains in three weeks, with WTI crude rising over 6% since the outbreak of hostilities in the Middle East, ongoing stalled peace talks between the US and Iran, and restricted traffic through the Strait of Hormuz, which handles about one-fifth of the world’s oil supply.
Reuters reported on Friday that the Fahal port in Oman halted oil loading after an explosion occurred near the mooring buoy docks, suspected to be caused by a drone attack.
Market analysts expressed concerns about declining global oil inventories, which could drive prices higher in the third quarter.
Hezbollah Secretary-General Naeem Qassem rejected on Thursday a US-mediated agreement between Israel and the Lebanese government aimed at ceasing hostilities. Iran insists on a ceasefire in Lebanon as a condition for any peace agreement with Washington.
US President Donald Trump stated on Thursday that he believes progress is being made between Israel and Lebanon, adding that Lebanon deserves peace.
Tony Sycamore, a market analyst at IG, noted in a memo: "Optimism remains limited amid conflicting news." He added, "Technically, as long as WTI crude stays above the support level near $80, the risks lean toward the upside."
OPEC Secretary-General Haitham Al-Ghais affirmed on Thursday that the organization maintains its forecast for oil demand growth of 1.2 million barrels per day this year, despite the Middle East conflict and the closure of the Strait of Hormuz.
Shipping data revealed that Iranian oil exports have fallen to their lowest level in six years, primarily due to the US naval blockade.
