Oil prices rise 0.9% on Strait of Hormuz risks but drop 5.2% weekly as OECD stockpiles ease supply concerns.
Brent crude oil prices climbed 0.9% to USD103.54 last Friday, driven by ongoing closure risks in the Strait of Hormuz. However, the benchmark fell 5.2% over the week amid optimism over a potential US-Iran agreement easing supply constraints.
Early Asian trading saw Brent drop over 5% to USD98.30, reflecting volatility tied to geopolitical developments. Analysts note OECD stockpiles could cover supply gaps well into next year, though sectoral shortages may emerge sooner.
The Strait of Hormuz remains closed, forcing reliance on existing inventories. Markets remain cautious as no reopening timeline is evident, balancing deal hopes against persistent supply risks.