Oil prices slide as Hormuz shipments recover despite fresh Gulf security fears

Brent crude futures dropped $1.47, or 1.95%, to $73.79 per barrel, while U.S. West Texas Intermediate (WTI) crude fell $1.44, or 2%, to $70.48 per barrel

Global oil prices fell nearly 2% on Friday and were on course for their sharpest weekly decline in months as concerns over supply disruptions eased following the resumption of crude shipments through the Strait of Hormuz, despite a fresh security incident near Oman.

Brent crude futures dropped $1.47, or 1.95%, to $73.79 per barrel, while U.S. West Texas Intermediate (WTI) crude fell $1.44, or 2%, to $70.48 per barrel in early trading.

Market sentiment improved after Saudi Aramco restarted crude oil loading operations at its Ras Tanura export terminal, ending a suspension that had lasted nearly four months. Shipping data showed two Very Large Crude Carriers (VLCCs), each capable of carrying around two million barrels of oil, loading cargo at the terminal, with another tanker waiting offshore.

Analysts said the increase in tanker movements through the Strait of Hormuz has eased immediate fears of prolonged supply disruptions. However, they noted that much of the recent rise in traffic involved vessels that had previously been stranded, while inbound shipments to the Gulf remain below normal levels.

Oil prices had surged more than 2% on Thursday after a cargo ship was struck by an unidentified projectile near Oman, prompting the United Nations shipping agency to suspend its voluntary evacuation programme in the area. U.S. officials alleged that Iranian forces targeted the vessel as it attempted to transit the strategic waterway, while Iranian authorities warned that ships operating outside designated Hormuz routes could face security risks.

Despite the latest incident, both Brent and WTI crude benchmarks are heading for weekly losses of around 8%, reflecting improved confidence that the Strait of Hormuz will remain open following the ceasefire that eased regional tensions.

Meanwhile, powerful earthquakes in Venezuela added a fresh layer of uncertainty to global oil markets. Initial inspections indicated that the country’s major oil fields, refineries, pipelines and export terminals escaped significant structural damage, as they are located away from the worst-hit regions.

However, widespread power outages have raised concerns over Venezuela’s ability to maintain its current crude production of nearly 1.2 million barrels per day, leaving traders closely watching developments in one of South America’s key oil-producing nations.