Brent and WTI crude futures fall sharply after increased tanker flows through the Strait of Hormuz reduce supply disruption concerns.
Brent crude futures slid $2.42, or 3.2%, to $72.84 a barrel, while U.S. West Texas Intermediate lost $1.97, or 2.7%, to $69.95. The declines put both benchmarks on track for weekly losses of nearly 10%, driven by easing supply fears as more tankers exited the Strait of Hormuz.
Prior to the drop, oil prices had jumped over 2% on Thursday after a cargo vessel was hit near Oman, prompting temporary supply concerns. However, market sentiment shifted as Saudi Aramco resumed oil loading at its Ras Tanura terminal, with two Very Large Crude Carriers loading 2 million barrels each.
Analysts cited oversupply risks and weak demand from China as key factors behind the selloff. The U.N.’s shipping agency had briefly suspended a voluntary evacuation scheme following the vessel incident, but normal flows resumed.