Global oil prices edged up slightly on Friday as investors closely monitored the progress of peace efforts between the US and Iran, aiming to return oil transport through the Strait of Hormuz to normal conditions.
Brent crude rose 17 cents, or 0.24%, to $72.10 per barrel, while US West Texas Intermediate (WTI) crude increased 14 cents, or 0.20%, to $68.83 per barrel.
Although prices recovered slightly, both contracts remained near their lowest levels since before the US-Israel-Iran conflict erupted in late February. Over the past week, Brent crude fell just 0.02% while WTI rose 0.12%, marking the smallest weekly changes in several months.
Tim Waterer, chief market analyst at KCM Trade, said the market remains cautiously hopeful that peace efforts will continue, but investors are not yet fully confident and are waiting for clear evidence that tensions along the energy transport route have eased.
Following a temporary peace agreement between the US and Iran, several oil-producing countries have begun increasing production and exports, especially as shipping through the Strait of Hormuz—a key route for about 20% of the world's oil and liquefied natural gas supply—has started reopening more fully.
Sources told Reuters that Kuwait increased its oil production in June to 1.65 million barrels per day from 580,000 barrels per day in May to accelerate exports after the situation eased.
Meanwhile, reports indicate that at least five large oil tankers carrying about 10 million barrels of crude from Saudi Arabia have passed through the Strait of Hormuz. Saudi Aramco has also shifted to using spot market pricing to speed up oil sales to customers in Asia.
However, despite the recovery in oil exports, the energy market continues to closely watch political developments in the Middle East, as events affecting the security of shipping through the Strait of Hormuz could impact global oil supply and cause prices to fluctuate again in the future.
Source:channelnewsasia
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