Oil Market Stabilizes at Around $100 Amid Ongoing Supply Concerns
The oil market closed out a volatile week at around $100 per barrel, with prices experiencing significant intraday fluctuations. WTI crude settled Friday at US$100.30 per barrel, down US$1.61, or 1.58%, from Thursday's close of US$101.91. Brent crude also dropped, settling at US$103.87 per barrel, down US$0.95, or 0.91%, from Thursday's close.
The market was driven by concerns over Saudi Arabia's oil supply, with drone attacks damaging three pumping stations on the East-West Pipeline. However, prices retreated later in the week as Saudi Arabia arranged additional crude exports through ship-to-ship transfers near Sohar, Oman, reducing fears of a severe supply shortage.
Despite this, the Strait of Hormuz remains heavily restricted, and diesel markets are exceptionally tight. The physical market is far from normal, with only four commodity vessels crossing the Strait on Thursday compared to a recent 10-day average of about 16.