Oil below $90... Markets await 'Hormuz' deal

Oil prices ended last week’s trading session lower, posting weekly losses as traders assessed indicators regarding the US Federal Reserve’s policy to combat inflation, alongside speculation about a potential agreement to resume normal navigation through the Strait of Hormuz.

Brent crude futures closed at $89.31 per barrel, down 39 cents or 0.43%, while US West Texas Intermediate (WTI) crude ended trading at $83.40 per barrel, falling 13 cents or 0.16%.

Over the course of the week, Brent crude fell by more than 5%, while US crude declined by more than 4%. Traders are monitoring the recovery of oil flows through the strait, which previously carried 20% of global oil production before the outbreak of the war, although traffic remains disrupted. Preliminary shipping data showed that seven commercial vessels crossed the strait on Thursday, down from 17 the previous day and below the ten-day daily average of 15 vessels.

Intermediaries are intensifying efforts to reopen the Strait of Hormuz. Tehran has agreed to put forward a list of conditions for resuming normal navigation, following pressure from a Qatari envoy to respect freedom of navigation.

Estimates from Goldman Sachs indicated that Gulf oil exports over the recent period ranged between 15 and 16 million barrels per day, a decrease of 7 to 8 million barrels per day compared to pre-war levels, but an increase of approximately 5 to 6 million barrels per day above the lowest level recorded in March.