Crude Oil Prices Set for Volatility as Hormuz Developments Loom
Crude oil prices are expected to remain volatile in the coming week as market participants track developments around the Strait of Hormuz, a key global oil transit route. The energy market saw significant price swings during the past week as investors responded to changing expectations about a possible agreement to reopen shipping through the Strait.
The US West Texas Intermediate (WTI) crude for September delivery settled at $78.18 a barrel on Friday, down from $84.67 at the end of the previous week. Meanwhile, Brent crude futures rose 1.29% to $83.55 a barrel on Friday but remained below the previous week's close of $90.12.
Commodity market experts say that a confirmed agreement to reopen the Strait could put further downward pressure on crude prices, while renewed tensions could quickly restore a geopolitical risk premium.