Brent crude climbs near $88 on Middle East risk
Brent crude rises toward $88 per barrel as talks to end the Middle East conflict and reopen the Strait of Hormuz remain deadlocked, while the IEA cuts its oil demand outlook and flags a potential supply decline this year.
Brent crude climbed toward $88 per barrel on Friday, recovering losses from the previous session as talks to end the Middle East conflict and reopen the Strait of Hormuz remained deadlocked, keeping investors alert to the risk of further escalation.
Vessels passing through the vital waterway continue to face persistent threats, although crude is still moving out of the Persian Gulf, with some tankers transiting while their transponders are switched off.
The US also claims that up to 9 million barrels of oil per day is currently passing through the waterway.
On the demand front, the IEA lowered its global oil demand outlook this week, warning that prolonged conflict and elevated prices are increasingly weighing on consumption.
However, the group expects global oil supply to decline by 4.3 million barrels per day, or around 4%, this year, as renewed hostilities in the Middle East threaten to push the global oil market deeper into deficit.