Oil Fluctuates, WTI Heads for Worst Weekly Drop in a Month
Oil prices fluctuated on Friday (May 22), with West Texas Intermediate (WTI) rising slightly to $96.28 per barrel, while July Brent crude traded at $103.20 per barrel. Despite the intraday gains, both were on track for significant weekly losses, nearly 9% for WTI and around 6% for Brent.
Market sentiment was affected by Iranian media reports stating that several ships had passed through the Strait of Hormuz under Iranian naval supervision, while hopes for a peace deal between Washington and Tehran kept prices from rising further.
Iran and Pakistan continue to seek mediation to end the more than two-month-old war between the US and Iran. Iran's foreign minister met with Pakistan's interior minister to discuss proposals for resolving the conflict, while US Secretary of State Marco Rubio said the discussions showed "good signs," but remained cautiously optimistic.
Significant differences remain over Iran's uranium stockpiles and the Strait of Hormuz toll system, as well as uncertainty surrounding the nuclear deal, maintaining high uncertainty in global energy markets. The closure of this strategic energy route has caused the largest supply disruption in history, triggering a surge in oil prices and adding to global inflationary pressures.
Investors are now monitoring developments in negotiations and the transition of energy flows through the Strait of Hormuz, which remains a key factor in oil price movements and the global economic outlook.
Source: Newsmaker.id
