Oil Prices Steady as Shipping Flows Take Centre Stage
Oil prices remained steady on Friday and were poised to end the month in positive territory as traders focused on shipping flows through key maritime chokepoints. The Brent futures contract was up 47 cents, or 0.53%, at $89.50 a barrel by 0952 GMT, while US West Texas Intermediate (WTI) crude was up 4 cents, or 0.05%, to $83.63 a barrel.
This marks a significant turnaround from the past two months, with Brent on track for a 22% gain in July and WTI targeting a 20% rise. According to Ole Hvalbye of SEB Research, 'The market has stopped trading the war and started trading the shipping data.'
Talks between Iran and Oman continue over managing the Strait of Hormuz, but tensions remain high, with Iran rejecting Oman's proposal for joint management. Saudi Arabia is seeking to lead a coalition to boost defence cooperation in key chokepoints.
A drone strike on two gas vessels in Egypt's Mediterranean port of Damietta has raised new concerns about shipping through the Suez Canal, one of the last major export routes available to Saudi oil amid the US-Iran conflict. Abu Dhabi National Oil Co (ADNOC) has acquired five very large crude carriers for $590 million to expand its fleet.