Oil rose by more than 1%, heading for a monthly gain
Kyiv • UNN
Brent crude futures rose 1.13% to $90.04 per barrel. IRGC stopped two tankers in the Strait of Hormuz, supporting prices.
Oil prices rose more than 1% on Friday and remain on track for a monthly gain, amid reports that some tankers were forced to turn around in the Strait of Hormuz, prompting traders to reassess shipping volumes through this key waterway, writes UNN citing Reuters.
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Brent crude futures rose $1.01, or 1.13%, to $90.04 a barrel by 11:18 GMT (14:18 Kyiv time), while U.S. West Texas Intermediate (WTI) crude gained $1.18, or 1.41%, to $84.77 a barrel.
In July, Brent prices were expected to rise 23%, and WTI about 22%.
"Iranian media claim that some tankers were forced to turn around, so... the low flow of vessels crossing the strait supports prices," said Giovanni Staunovo, an analyst at UBS.
According to the Fars news agency, the IRGC stopped two tankers trying to pass through the Strait of Hormuz, and four others changed course.
However, two very large crude carriers (VLCCs) carrying oil from the Persian Gulf exited the strait on Friday, although traffic through the waterway remained light, according to data from ship-tracking system Kpler.
Meanwhile, on Thursday, 29 vessels carrying commodities passed through the Bab el-Mandeb Strait.
"The market stopped trading on war data and started trading on shipping data," said Ole Hvalbye, a market analyst at SEB Research.
Negotiations between Iran and Oman on managing the Strait of Hormuz continue, Iran's Labour News Agency reports, despite Iran rejecting Oman's proposal for joint management of the waterway.
Saudi Arabia seeks to lead a coalition to enhance defense cooperation in the Bab el-Mandeb Strait, the Red Sea, and the Gulf of Aden — key energy supply chokepoints.
A drone strike that caused fires on two gas carriers in the Egyptian Mediterranean port of Damietta created a new threat to shipping through the Suez Canal, one of the last major export routes for Saudi oil amid the expanding U.S.-Iran war.
The war has disrupted traffic through both the Bab el-Mandeb Strait and the Strait of Hormuz — two of the world's most critical energy chokepoints.
According to three sources familiar with the matter, Abu Dhabi National Oil Company (ADNOC) has purchased five very large crude carriers (VLCCs) for approximately $590 million, expanding its fleet amid a tanker supply squeeze due to conflicts in the Red Sea and the Strait of Hormuz.
In other news, the Ukrainian military said it struck Russia's Volgograd refinery overnight on Friday, causing a fire at the facility.
"In the near term, Brent crude prices are likely to remain in a relatively wide range of $80-100 per barrel, as the market reacts to geopolitical risks," said Paolo Broccardo, CEO of BankPro.