Oil Prices Slip as Tanker Traffic Continues from Middle East Conflict Zones
Oil prices retreated on Thursday after a sharp rally as tanker traffic continued from the Middle East despite escalating U.S.-Iran tensions, easing immediate concerns over global crude supplies.
The Brent futures fell $1.29, or 1.42%, to $89.45 a barrel, while U.S. West Texas Intermediate (WTI) crude fell 56 cents, or 0.66%, to $83.90 a barrel.
Thirty-nine commodity ships passed through the Bab el-Mandeb strait into the Red Sea on Tuesday, the highest number since July 19, with only a few transiting through the Strait of Hormuz, preliminary shipping data showed.
According to IG market analyst Tony Sycamore, 'while overall volumes are reduced, oil continues to leak out of the region through multiple channels, and additional workarounds are being explored.'