O oil closed down this Friday (10), although prices remain at high levels, close to US$ 100 per barrel, still with concerns about limited flows through the Strait of Hormuz. The commodity has lost about 12% this week after Iran and the US agreed on Tuesday to a ceasefire.
Oil futures contracts Brent closed down 0.75%, at US$ 95.20 per barrel.
While the WTIa reference in the American market, fell 1.33%, to US$ 96.57.
During the week, WTI fell 13.4% and Brent fell 12.7%.
However, fighting has continued and the flow of oil through the Strait of Hormuz remains heavily restricted, keeping futures close to US$100 per barrel and pushing prices on the physical market to record levels.
“The main question for the oil market is whether ship traffic through the Strait of Hormuz will resume. So far, there are no signs of this happening. If oil supplies from the Persian Gulf remain blocked, it is likely that oil prices will rise again,” analysts at Commerzbank said in a note on Friday.
Traffic through the Strait of Hormuz remained at less than 10% of normal volumes as Tehran asserted its control by warning ships to stay within its territorial waters.
Most of the ships that sailed through the Strait of Hormuz over the past day were linked to Iran, according to ship tracking data released on Friday.
Iran wants to charge fees for ships passing through the strait in a peace deal, a Tehran official told Reuters on April 7. Western leaders and the United Nations shipping agency rejected the idea.
The crucial artery for oil and gas flows has been effectively closed by the conflict that began when the US and Israel launched airstrikes against Iran on February 28.
“The Strait of Hormuz remains effectively restricted and the operation of the global oil system is far from normal,” said Saxo Bank analyst Ole Hansen, adding that futures markets have priced in a partial normalization but the physical market is reflecting an acute shortage.
Prices wavered on Friday as investors balanced lower Saudi production with diplomatic progress. Saudi state news agency SPA reported on Thursday that attacks on Saudi Arabia’s energy facilities have cut the kingdom’s oil production capacity by about 600,000 barrels per day and reduced output from the East-West oil pipeline by about 700,000 bpd.
Meanwhile, Lebanon said it intends to attend a meeting with US and Israeli representatives in Washington next week to discuss and announce a ceasefire in the parallel war waged by Israel against Iran’s Hezbollah allies in the country.
*With information from Reuters
