Oil Prices Steady as Traders Assess Geopolitical Risks

Oil prices were steady on Friday and on track for a monthly rise as traders assessed supply flows through key maritime chokepoints. The market is reacting to geopolitical risks, with Brent futures up 47 cents, or 0.53%, at $89.50 a barrel by 0952 GMT, while U.S. West Texas Intermediate (WTI) crude was up 4 cents, or 0.05%, to $83.63 a barrel.

The market has stopped trading the war and started trading the shipping data, according to Ole Hvalbye, market analyst at SEB Research. Iran's Revolutionary Guards stopped two tankers from transiting the Strait of Hormuz, while four others changed course. Two very large crude carriers (VLCC) carrying oil loaded from the Gulf did exit the strait on Friday, although traffic through the waterway remained thin.

Talks between Iran and Oman continue on managing the Strait of Hormuz, despite Iran rejecting Oman's proposal for joint management. Saudi Arabia is seeking to lead a coalition to boost defence cooperation in key chokepoints.