Oil Prices Pull Back Amid Ongoing Supply Risks

Oil prices pulled back on Friday after surging to historic levels, but analysts warn that supply risks remain a major concern. WTI crude fell to approximately $99.20 per barrel, down $3.28, or 3.20%, from Thursday's official settlement of $102.48. Brent crude also declined, reaching around $103.88 per barrel, down $3.75, or 3.48%, from Thursday's settlement.

The market remains tight due to continued disruptions in the Middle East, with vessel traffic through the Strait of Hormuz running at a fraction of its normal level. The International Energy Agency has warned that normal oil flows may not return until 2027, and global supply is expected to fall substantially more this year than previously forecast.

Despite Friday's decline, both WTI and Brent remain sharply higher for the week, with analysts warning that prices are likely to remain highly volatile due to ongoing supply risks. The market remains sensitive to headlines, with recent reports of a possible temporary arrangement between Middle Eastern governments and Iran weighing on prices.