LONDON: Oil prices edged lower on Friday after an Indian tanker sailed out of the Strait of Hormuz and the United States introduced measures aimed at easing supply concerns. However, prices remained on track for weekly gains as disruptions linked to the Middle East conflict continued.
Brent crude futures for May delivery fell 63 cents, or 0.6%, to $99.83 a barrel at 1124 GMT and were still set for an 8% weekly rise. Meanwhile, US West Texas Intermediate (WTI) crude for April dropped $1.29, or 1.4%, to $94.44 a barrel, though it remained on course for a 4% weekly gain.
An Indian-flagged oil tanker carrying gasoline to Africa sailed out from the eastern side of the Strait of Hormuz, according to an Indian government official on Friday.
“Some oil is coming through the strait, but it does not mean it will reopen,” said Tamas Varga, an oil analyst at brokerage PVM. “This dip should be viewed as short-lived.”
The United States also issued a 30-day license allowing countries to purchase Russian oil and petroleum products currently stranded at sea. Treasury Secretary Scott Bessent said the move was intended to help stabilise global energy markets shaken by the US-Israeli war with Iran.
Russia’s presidential envoy Kirill Dmitriev said the decision could affect around 100 million barrels of Russian crude—roughly equivalent to nearly one day of global oil production.
“Russian oil was already going to buyers; this is not bringing additional barrels to the market but it does reduce some friction,” said Bjarne Schieldrop, chief commodities analyst at SEB.
He added that markets are increasingly worried that the conflict could continue for an extended period. “The big fear is that we have severe damage to oil infrastructure, which would be a lasting loss of supply.”
The decision regarding Russian oil followed an announcement by the US Energy Department that Washington would release 172 million barrels from its Strategic Petroleum Reserve to help curb rapidly rising oil prices.
The plan is part of a coordinated effort with the International Energy Agency, which has agreed to release a record 400 million barrels of oil from strategic reserves, including the US contribution.
However, the temporary relief from the IEA’s announcement faded after renewed escalation in the Middle East, according to IG analyst Tony Sycamore.
Iran’s new Supreme Leader Ayatollah Mojtaba Khamenei said the country would continue the conflict and maintain the closure of the Strait of Hormuz as leverage against the United States and Israel.
In another development, Iraqi security officials said two fuel tankers in Iraqi waters were struck by explosive-laden Iranian boats on Thursday. An Iraqi official also told state media that the country’s oil ports had completely halted operations.
US President Donald Trump said on Thursday that the United States could benefit financially from higher oil prices driven by the conflict with Iran, though he stressed that preventing Iran from obtaining nuclear weapons remained the top priority.
Both oil benchmarks surged more than 9% on Thursday, reaching their highest levels since August 2022.
Goldman Sachs predicted on Friday that Brent crude would average above $100 per barrel in March and around $85 in April, as energy markets remain volatile due to the Iran conflict, potential damage to Middle Eastern energy infrastructure, and disruptions in the Strait of Hormuz.
Analysts noted that Brent is better supported than WTI because Europe faces greater energy security risks, while the United States is relatively shielded due to its strong domestic production.
Sources also told Reuters that Iran has deployed around a dozen naval mines in the Strait of Hormuz, a move that could complicate efforts to reopen the crucial shipping route.
Meanwhile, US Treasury Secretary Scott Bessent told Sky News that the US Navy, possibly alongside an international coalition, could escort vessels through the Strait of Hormuz when military conditions allow.
