Oil Prices Stable; Iran Blockade Threat Curbs Decline
Oil prices remained relatively stable during Friday's trading (August 14) after the United States threatened to maintain a naval blockade against Iran indefinitely. Brent crude hovered around US$87.08 per barrel, while WTI traded near US$81.31.
Both oil benchmarks remain on track for a weekly gain of approximately 4%, despite dropping more than 2% in the previous session. Geopolitical risks helped stem selling pressure following data showing a massive surge in US oil inventories and downward revisions to global demand forecasts.
Washington warned that economic pressure on Tehran could intensify following a stalemate in ceasefire talks. US Treasury Secretary Scott Bessent even signaled that new measures would be taken to further isolate Iran's economy.
Tensions in the Strait of Hormuz also remain high. Iran continues to restrict shipping activity in the waterway, which—prior to the conflict—carried about 20% of the world's oil supply. Security risks have escalated after two vessels owned by the Abu Dhabi National Oil Company were reportedly attacked while transiting the strait.
On the other hand, the demand outlook is acting as a drag on price increases. OPEC and the International Energy Agency have both cut their oil demand forecasts, while US crude inventories recorded their largest weekly rise in over three years. These conditions have left the market caught in a tug-of-war between supply risks and demand concerns.
Newsmaker Analysis: Oil prices continue to find strong support from the threat of an Iranian blockade and uncertainty surrounding the Strait of Hormuz; however, the surge in US stockpiles and a weaker demand outlook are limiting upside potential. As long as these opposing sentiments persist, Brent is likely to remain within the US$85–US$90 range, with geopolitical escalation serving as the primary trigger for a sharper rally. (asd)
Source: Newsmaker.id
