Key facts
- Oil prices saw a slight increase on Friday before the US holiday weekend.
- Brent futures were up 0.24% to $72.10 a barrel, and WTI was up 0.20% to $68.83 a barrel.
- The market is showing cautious optimism regarding peace efforts between the United States and Iran.
- Kuwait's oil production rose sharply to 1.65 million barrels per day in June.
- Saudi Aramco is speeding up sales in Asia by using spot pricing.
Oil prices experienced a slight increase on Friday, with Brent futures up 0.24% to $72.10 a barrel and West Texas Intermediate (WTI) up 0.20% to $68.83 a barrel. This rise occurred ahead of a long holiday weekend in the United States and amid cautious optimism surrounding peace efforts between the U.S. and Iran.
Earlier in the week, both benchmarks had reached their lowest levels since before the conflict between the U.S. and Iran began in late February. The market is exhibiting guarded optimism, with traders waiting for concrete evidence that peace efforts will hold before fully committing.
Production is expected to ramp up with the potential reopening of the Strait of Hormuz, a critical waterway that previously carried one-fifth of the world's daily oil and LNG supply. Kuwait's oil production surged in June to 1.65 million barrels per day from 580,000 bpd in May, following an interim peace agreement. Additionally, at least five supertankers carrying 10 million barrels of Saudi oil have departed the Strait of Hormuz, as Saudi Aramco seeks to accelerate sales in Asia by adopting spot pricing.