Oil prices dip as Strait of Hormuz traffic resumes, market eyes demand outlook
Brent and U.S. crude fell modestly on Friday as tanker movements through the Strait of Hormuz recovered and analysts turned to demand forecasts and OPEC's outlook.
Oil prices slipped on Friday while traders evaluated the impact of the interim U.S.-Iran agreement and the apparent revival of shipping through the Strait of Hormuz. Brent crude for August fell 0.45% to $79.49 a barrel and U.S. West Texas Intermediate for July dropped 0.31% to $76.36.
"The Iranians, for the second night in a row, did not shoot at any ships in the Strait of Hormuz," U.S. Vice President JD Vance told reporters, adding that the parties were "honoring their end of the commitment."
OPEC Secretary General Haitham Al Ghais said the organization does not anticipate an imminent peak in oil demand and dismissed International Energy Agency forecasts of a near-term supply surplus. He emphasized a focus on fundamentals and actual numbers rather than speculative scenarios.
Market analyst Tiago Lacerda of Axi projected near-term Brent prices to range between $75 and $82 a barrel, noting that Brent remains about 36% below its wartime peak. He cautioned that the market remains watchful of how quickly major shipping lines resume regular transits and whether insurance costs stay high, indicating a measured approach to normalization.
— CNBC's Spencer Kimball contributed to the report.
