Oil prices fall after Oman says Mina al Fahal operations proceeding normally
- Brent crude futures were down 84 cents, or 0.9%, at $94.19 a barrel
Oil prices fell after Oman denied port disruption, but are still set for weekly gains amid Middle East tensions and stalled US-Iran peace talks, despite OPEC's stable demand forecast.
- Oman's denial of port disruption affecting oil prices.
- Middle East tensions and their influence on crude futures.
- OPEC's maintained oil demand growth forecast.
LONDON: Oil prices fell on Friday after Oman said operations at its Mina al Fahal port were proceeding normally, following a Reuters report of disruption after an explosion.
Petroleum Development Oman said operations at Mina al Fahal port were unaffected, after three sources told Reuters that oil loading had been suspended following an explosion near its mooring berths.
Oman exports 800,000 to 900,000 barrels per day of crude from the terminal.
Brent crude futures were down 84 cents, or 0.9%, at $94.19 a barrel by 1318 GMT, after settling down 2.84% in the previous session.
U.S. West Texas Intermediate crude was at $91.91 a barrel, down $1.13, or 1.2%, following a 3.1% loss on Thursday.
Both contracts still looked set to post their first weekly gains in three weeks, with Brent up 2.4% and WTI around 5.1%.
The contracts rose after fighting flared in the Middle East as U.S.-Iran war peace talks dragged on while traffic in the Strait of Hormuz, where a fifth of the world’s oil passes, remained limited.
“As hopes for an agreement between the U.S. and Iran were dashed once again, the price of Brent crude and European natural gas rose slightly this week,” Commerzbank analysts said on Friday.
However, Brent’s gains have been capped by oil inventories lasting longer than expected, rerouted exports and falling demand, Commerzbank added.
Hezbollah leader Naim Qassem rejected on Thursday a U.S.-brokered agreement between Israel and the Lebanese government to halt the fighting. Iran has made a ceasefire in Lebanon a condition for any peace deal with Washington.
U.S. President Donald Trump said on Thursday he believed progress was being made between Israel and Lebanon and that Lebanon deserved to have peace.
“Any optimism remains heavily clouded by a tangled web of headlines and counter-headlines,” IG market analyst Tony Sycamore said in a note.
OPEC is sticking to its oil demand growth forecast of 1.2 million barrels per day for this year, Secretary General Haitham Al Ghais said on Thursday, despite the Middle East conflict and closure of the Strait of Hormuz.
Iranian oil exports have fallen to their lowest level in six years mainly due to the U.S. naval blockade, according to shipping data, although weak demand in China has depressed prices for the oil.
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