Crude Oil Logs First Weekly Fall in Three Weeks as Strait of Hormuz Flows Recover
· Business · Economic Times, LiveMint
Crude oil posted its first weekly decline in three weeks as recovering flows through the Strait of Hormuz eased supply concerns. Brent crude settled at $89.31 a barrel on Friday, down 39 cents or 0.43%, while WTI fell 13 cents to $83.40 a barrel. For the week, Brent declined more than 5% and WTI fell over 4%. Prices came under additional pressure after new Fed Chair Kevin Warsh signalled the central bank could raise interest rates later this year to contain inflation. Goldman Sachs estimated total Gulf exports had recently reached 15 to 16 million barrels per day, still 7 to 8 million bpd below pre-war levels but well above the March low. The U.S.-Israel war with Iran entered its sixth month on Friday, and the U.S. this week announced what it called the toughest sanctions in history on Iran, which Tehran condemned as ineffective.
Why it matters
India imports the bulk of its crude oil needs and depends heavily on Gulf shipping lanes, so any disruption or recovery in Strait of Hormuz flows directly affects Indian fuel prices, refining margins, and the rupee. The Fed rate signal and ongoing Iran conflict keep oil markets volatile, with Asian refiners already taking in more crude as flows improve.
Read the original report — Economic Times
Join us on Telegram
Breaking news the moment it lands. At 10,000 members we ship the Android app.