Oil Prices Slip Amid Increased Shipping Flows

Crude oil prices declined on July 31 as increased shipping flows through key Middle East routes eased immediate supply concerns.

Brent crude futures fell $1.03, or 1.2%, to $88 a barrel by 2:15 a.m. GMT, while U.S. WTI crude dropped $1.50, or 1.8%, to $82.09 a barrel.

Despite the decline, both Brent and WTI remained on track for monthly gains of about 20% as geopolitical risk continued to support the market.

The Strait of Hormuz remains central to the outlook because it normally carries about one-fifth of global crude oil and liquefied natural gas shipments. Traders are also watching the Red Sea and Bab el-Mandeb Strait after new threats to Saudi shipping routes.