Oil Prices Hold Steady Amid Ongoing Geopolitical Tensions
Oil prices held steady on Friday but are still poised for a weekly drop due to stagnant US-Iran diplomatic talks and ongoing tensions in the region. Brent crude futures dipped by four cents to $89.66 a barrel, while West Texas Intermediate (WTI) crude futures fell 32 cents, or 0.38%, to $83.21.
The US announced what it called the 'toughest sanctions in history' on Iran earlier this week, but Tehran said they were an 'inhumane and hostile act' that had lost their effectiveness. The prime minister of Qatar met senior Iranian leaders in Tehran yesterday, stressing the importance of returning to the pre-war status of open shipping through the international waterway.
However, the tentative recovery of oil flows through the Strait of Hormuz was choppy, with seven commodity vessels transiting on Thursday, down from 17 a day earlier and below the 10-day average of 15. Goldman Sachs estimated recent total Gulf exports at 15 million to 16 million barrels per day, 7 million to 8 million bpd below pre-war levels but 5 million to 6 million above the lowest point in March.