Key facts
- Oil prices decreased on Friday.
- Oman confirmed normal operations at its Mina al Fahal port.
- Brent crude futures fell 0.9% to $94.19 a barrel.
- U.S. West Texas Intermediate crude was down 1.2% at $91.91.
- Operations at the port were unaffected by an earlier explosion near its mooring berths.
Oil prices fell on Friday after Oman announced that operations at its Mina al Fahal port were proceeding normally, countering earlier reports of disruption caused by an explosion. Petroleum Development Oman confirmed that operations were unaffected, despite three sources telling Reuters that oil loading had been suspended following an explosion near the port's mooring berths. Oman exports between 800,000 and 900,000 barrels of crude oil per day from this terminal. Brent crude futures decreased by 0.9% to $94.19 a barrel, while U.S. West Texas Intermediate crude was down 1.2% at $91.91. Both benchmarks were still on track for their first weekly gains in three weeks. The market had previously seen prices rise due to renewed fighting in the Middle East and stalled U.S.-Iran peace talks, with traffic in the Strait of Hormuz limited. Commerzbank analysts noted that hopes for a U.S.-Iran agreement being dashed contributed to the week's price increases, but Brent's gains were capped by longer-than-expected oil inventories, rerouted exports, and falling demand. Hezbollah's leader rejected a U.S.-brokered agreement between Israel and Lebanon, making a ceasefire in Lebanon a condition for any peace deal with Washington. U.S. President Donald Trump expressed belief in progress between Israel and Lebanon. IG market analyst Tony Sycamore commented that optimism is heavily clouded by conflicting headlines. OPEC Secretary General Haitham Al Ghais stated on Thursday that OPEC is maintaining its oil demand growth forecast of 1.2 million barrels per day for the year, despite the Middle East conflict and the closure of the Strait of Hormuz. Shipping data indicated that Iranian oil exports have fallen to a six-year low, largely due to a U.S. naval blockade, though weak demand in China has also depressed prices.