Oil posts consecutive losses for the second week

Brent crude rose by more than $1 per barrel on Friday, amid ongoing uncertainty surrounding negotiations to determine control of the Strait of Hormuz and its reopening, although prices recorded a second consecutive weekly loss.

Futures contracts for oil rose by more than $3 per barrel at Thursday’s settlement, as Iran studied a bill to ban the passage of American and Israeli ships through the Strait of Hormuz, which had previously handled nearly 20% of global oil and liquefied natural gas supplies before the outbreak of war in late February.

Vandana Hari, founder of VanDana Insights, an oil market analytics firm, said that signals regarding the possibility of reaching an agreement caused sharp fluctuations in market confidence, but the market still does not know what must happen to finalize the deal.

Andrew Lipo, head of Lipo Oil Associates, said, “The market is trying to assess whether an agreement between Iran and Oman would allow a ship flying the American flag to pass through the Strait of Hormuz.” He added, “Will a ship owned by the United States be allowed to pass? Will a ship heading to a US port be allowed to pass?”

John Kilduff, a partner at Again Capital, said, “We need the strait to be fully opened,” adding that continued ambiguity about the outcome of the war and its timing keeps traders in a state of high anxiety.