Oil Prices Rise Amidst Temporary Russia Crude Supply
Oil prices edged higher on Friday after reports that Iran has begun laying mines in the Strait of Hormuz, raising concerns over shipping disruptions, though gains were capped by US measures aimed at stabilising global energy supplies.
Brent traded at $99.39 per barrel, the US benchmark West Texas Intermediate (WTI) rose 0.6% to $95.81 per barrel, compared with $95.24 in the previous session.
Iran began laying mines in the Strait of Hormuz using smaller boats after US forces destroyed larger Iranian vessels capable of quickly laying mines, according to media reports Thursday.
Further stoking fears of supply disruptions, Iran’s new supreme leader, Mojtaba Khamenei, said Thursday that the “lever of blocking the Strait of Hormuz must continue to be used.”
Meanwhile, the US on Thursday announced it had temporarily authorised the purchase of Russian oil already stranded at sea in an effort to stabilise global energy markets.
US Treasury Secretary Scott Bessent described the move as a “narrowly tailored, short-term measure” that applies only to oil already in transit. The Treasury Department’s exemption allowing purchases of Russian oil at sea will expire on April 11.
Meanwhile, the US Department of Energy had said the administration had also decided to release 172 million barrels of oil from the Strategic Petroleum Reserve.
The oil will be supplied to the market over roughly 120 days. The statement added that the strategic reserve is expected to be replenished within the next year with around 200 million barrels — about 20% more than the volume to be withdrawn — without additional costs to taxpayers.
The move followed an agreement by the 32-member International Energy Agency to release around 400 million barrels of oil from strategic reserves, marking the largest coordinated release in the agency’s history. Strategic Oil Reserves Release Will Reduce Prices – Trump
