Oil Prices Climb, Brent Crude Nears $85/Barrel
Oil prices edged higher on Friday as disruptions to shipments through the Strait of Hormuz following attacks on Iran continued to fuel supply concerns.
However, gains were limited after the US granted Indian refiners a temporary waiver to buy Russian crude. Brent crude was trading at $84.66 per barrel at the time of writing, and West Texas Intermediate was sold for $79.94 per barrel as the U.S. Treasury Department said it would issue sanction waivers for commodity trading companies to start selling Russian oil sitting on tankers.
The action was taken to stem the negative tide as Middle Eastern oil supplies dry up due to the severe disruption to tanker traffic in the Strait of Hormuz.
Since Feb. 28, when the US and Israel launched attacks against Iran, Brent prices have risen by more than $20 a barrel, while WTI has gained over $22, as Iran’s retaliatory strikes targeting energy facilities heightened fears of supply disruptions.
Traffic through the Strait of Hormuz, a critical route for global energy trade, has slowed sharply following the escalation. At the same time, production and export flows in the region have also been affected, supporting prices.
However, price gains were capped after Washington granted Indian refineries a 30-day temporary waiver to purchase Russian crude in a bid to ease global supply disruptions caused by the Middle East conflict.
US Treasury Secretary Scott Bessent said in a post on social media platform X that the waiver was intended to help maintain global oil supply.
Bessent added that the measure was deliberately designed as a short-term step and would not provide any meaningful financial benefit to the Russian government, as it only applies to cargoes already stranded at sea.
The US imposed sanctions on Russia’s oil trade covering financial, insurance and shipping services after Moscow invaded Ukraine in February 2022.
Market sentiment was also tempered by reports that Washington could introduce further measures, potentially including steps affecting the oil futures market, to limit price increases. Intercontinental Exchange Makes Investment in OKX
