Oil Prices Stable Amid Geopolitical Risks and Weakening Demand

Oil prices remained near $81 per barrel on Friday as investors weighed geopolitical risks against weakening demand. The Strait of Hormuz, a critical waterway for global energy markets, remains a focal point for concern.

Despite continued diplomatic efforts to reopen the strait, crude shipments through the strategic passage are still flowing, albeit at a reduced capacity. Some tankers have reportedly switched off their transponders as operators navigate heightened security risks.

The US has claimed that up to 9 million barrels of crude oil per day is currently moving through the waterway, with US forces expanding their ability to escort tankers through the passage.

However, growing concerns over demand are tempering price increases. The International Energy Agency cut its global oil demand outlook this week, citing prolonged conflict and elevated prices as key factors weighing on consumption.