Oil Prices Slide on Fed Policy Worries and Strait of Hormuz Rumors

Oil prices settled lower on Friday and for the week as traders evaluated indications regarding the US Federal Reserve's inflation-fighting policy and rumors of a possible agreement on shipping through the Strait of Hormuz.

Brent crude futures settled at $89.31 a barrel, while US West Texas Intermediate (WTI) crude finished at $83.40 a barrel. For the week, Brent fell by more than 5% and WTI by more than 4%.

Following comments by new Federal Reserve Chairman Kevin Warsh pointing to a possible interest rate hike later this year to curb inflation, oil prices fell further. Global product markets remain strong following further Ukrainian strikes on Russian refineries.

However, there is considerable speculation that a deal to reopen the Strait of Hormuz could be reached over the weekend, analysts said.