Oil Prices Steady, US-Iran Diplomacy a Restraint
Oil prices held steady at the end of a volatile week, as the market monitored the continuation of talks between the United States and Iran. Brent traded above US$76 per barrel after falling more than 2% on Thursday, while West Texas Intermediate (WTI) hovered around US$72 per barrel.
Oil prices remained affected by tensions in the Strait of Hormuz, a vital waterway for energy shipments from the Gulf region to global markets. Shipping traffic through the waterway dropped sharply following a series of attacks on ships and retaliatory attacks between the US and Iran. However, the market viewed the situation as not yet escalating into a full-blown war.
Sentiment improved slightly after US officials stated that technical talks with Iran were ongoing and Washington remained committed to finding a solution. This signaled that the diplomatic path was not yet closed, although the status of the previous ceasefire remained unclear after US President Donald Trump had previously called the deal over.
Meanwhile, the market remained cautious due to the thin shipping activity in the Strait of Hormuz. Tracking data shows no large commodity vessels visible, although an empty Greek-owned supertanker reportedly returned to the Gulf after passing through the route. This situation has market participants closely monitoring whether supplies from Gulf producers, including Saudi Arabia, remain smooth.
Investors are also awaiting the International Energy Agency's (IEA) monthly report to gauge the direction of global oil demand and supply. At the same time, the Brent price structure suggests the market remains undecided. After initially being in a bearish pattern at the start of the week, then tightening midweek, conditions returned to near-balance on Friday. This means oil still has the potential for volatility as long as the US-Iran conflict remains unabated. (asd)*
Source: Newsmaker.id
