Oil Prices Sink Amid Fed Signals, Hormuz Shipping Concerns
Oil prices declined on Friday and recorded their third straight weekly loss as traders weighed signals from the US Federal Reserve on inflation and speculation about a possible deal to restore normal shipping through the Strait of Hormuz.
Brent crude futures settled at $89.31 a barrel, falling 39 cents or 0.43%, while West Texas Intermediate (WTI) crude finished at $83.40, down 13 cents or 0.16%.
The decline in oil prices reflects uncertainty surrounding global energy supplies and demand, with the US Federal Reserve Chairman Kevin Warsh indicating that interest rates could be raised later this year to contain inflation.
Phil Flynn, a senior analyst at Price Futures Group, said the oil market is also being influenced by developments affecting refined-product supplies, including continued Ukrainian attacks on Russian refineries and speculation about a possible agreement to reopen the Strait of Hormuz.