Oil Prices Slide as Tankers Exit Strait of Hormuz Despite Gulf Attack
Cue Writer
Oil prices fell Friday as traders focused on signs that more tankers were moving out of the Strait of Hormuz, easing some supply fears even after a cargo ship was attacked near Oman, according to CNBC.
CNBC reported that international benchmark Brent crude futures for August were down 3.2% at $72.83 a barrel, while U.S. West Texas Intermediate futures for August fell 3.2% to $69.62, putting U.S. crude below the $70 mark.
The move lower came as markets weighed competing signals from the region. A U.S. official told MS NOW that Iran was behind an attack on a Singapore-flagged cargo ship near the coast of Oman, CNBC reported. The United Kingdom Maritime Trade Operations said the ship reported no casualties and no environmental damage.
The Strait of Hormuz remains one of the world’s most important energy chokepoints, so even short disruptions can quickly affect expectations for fuel, shipping and inflation. For consumers and businesses in the U.S. Virgin Islands, sustained moves in oil markets can eventually show up in transportation costs, utility expenses and the price of imported goods.
Investors are also watching diplomacy and OPEC developments. CNBC reported that tensions remained elevated over the use of Iranian funds covered by a memorandum of understanding, while Iraq has reportedly sought a higher production quota and could leave OPEC if its demands are not met.
The latest trading suggests markets are still sensitive to headlines from the Gulf, but for now traders appeared to give more weight to improved tanker movement than to the risk of a wider supply shock.
Source: CNBC