Oil Prices Fall Slightly But Still Poised for Weekly Gain Amid Supply Tensions
Crude oil prices fell slightly on July 24 but are still poised to close the week higher due to growing supply tensions. The Brent crude price dipped by 81 cents, or 1%, to $99.68 a barrel at 0126 GMT, while West Texas Intermediate (WTI) futures dropped 70 cents, or 0.76%, to $91.49 a barrel.
The prices are set for a weekly gain of 13.5% and 11%, respectively, as market concerns over the possible closure of key shipping routes continue to drive up prices. The Bab el-Mandeb waterway, which connects the Red Sea with the Indian Ocean, is a major oil transit channel.
The Iran-aligned Houthis said they had attacked two Saudi oil tankers in the Red Sea on Thursday, raising concerns that the waterway could be closed. U.S. President Donald Trump vowed to 'hold Iran responsible' for any further attacks.
Goldman Sachs has warned that Brent crude could climb to $120 a barrel if disruptions to shipping through the Strait of Hormuz continue. The company's base case remains that tensions in the Middle East will eventually ease, leading to lower oil prices.