Weekly Crude Prices Fall for 4th Straight Week Amid Shipping Recovery, Easing US-Iran Tensions
Oil benchmarks continued their weekly downward streak on Friday, with both WTI and Brent hovering near pre-war levels as shipping recovers, while easing US-Iran peace tensions continue to weigh on prices. West Texas Intermediate settled at $68.78 /bbl, down from $70.24/bbl the previous week, while Brent closed at $71.94 /bbl from $73.15/bbl a week earlier. Brent and WTI contracts fell for their fourth straight week, down about 0.2% and 0.8%, respectively. Analysts noted that the primary bearish trigger for the market has been a rapid pick-up in commercial tanker traffic navigating the reopened Strait of Hormuz, which has significantly eased concerns over global supply shortages. The sudden return of these physical barrels, combined with ongoing releases from the US Strategic Petroleum Reserve, has placed intense pressure on the front end of the forward curve, pushing Dubai deeper into contango and dragging Brent down, ING analysts said. Brent trades near unchanged on the week, having returned to pre-war levels, with support emerging ahead of $70, Saxo Bank strategists said, adding that this may signal that the ongoing recovery in supply flows through the Strait of Hormuz is.
Oil benchmarks continued their weekly downward streak on Friday, with both WTI and Brent hovering near pre-war levels as shipping recovers, while easing US-Iran peace tensions continue to weigh on prices.
West Texas Intermediate settled at $68.78 /bbl, down from $70.24/bbl the previous week, while Brent closed at $71.94 /bbl from $73.15/bbl a week earlier.
Brent and WTI contracts fell for their fourth straight week, down about 0.2% and 0.8%, respectively.
Analysts noted that the primary bearish trigger for the market has been a rapid pick-up in commercial tanker traffic navigating the reopened Strait of Hormuz, which has significantly eased concerns over global supply shortages.
The sudden return of these physical barrels, combined with ongoing releases from the US Strategic Petroleum Reserve, has placed intense pressure on the front end of the forward curve, pushing Dubai deeper into contango and dragging Brent down, ING analysts said.
Brent trades near unchanged on the week, having returned to pre-war levels, with support emerging ahead of $70, Saxo Bank strategists said, adding that this may signal that the ongoing recovery in supply flows through the Strait of Hormuz is.