Ship Attacks Shadow Current Oil Prices!
Global oil prices are heading for a weekly decline after shipping activity through the Strait of Hormuz has resumed. However, an attack on a cargo ship near Oman has renewed concerns about the security of this vital shipping lane.
Brent crude fell below US$74 per barrel, while West Texas Intermediate (WTI) hovered around US$71 per barrel in Friday trading. Both benchmarks had rallied more than 2% in the previous session after the container ship Ever Lovely was reportedly struck by an unidentified projectile.
Previously, ships had begun returning to the Strait of Hormuz after initial signs of a more permanent agreement between the United States and Iran. This allowed oil supplies from the Gulf region to flow back into the global market.
However, the attack on the ship has further shaken the confidence of the ship's owners and crew. White House officials said it was too early to determine the perpetrators of the attack, although no casualties or environmental damage were reported.
Tensions have also escalated after two alternative routes through Hormuz emerged. One runs near Iran, while the other follows the coast of Oman and enjoys US protection. Iran stated that shipping outside its official framework would not be subject to security guarantees.
From a market perspective, this incident triggered a buying spree after oil prices had previously fallen significantly. However, pressure continues to arise from the recovery of Gulf oil exports and increased production in several producing countries. This situation makes oil prices remain vulnerable to volatility, especially if security risks in the Strait of Hormuz increase again. (asd)*
Source: Newsmaker.id
