Oil prices dipped on Friday (March 13) as an Indian tanker sailed out of the Strait of Hormuz and the U.S. put \u200bforth measures to try and ease supply concerns, but were on track for weekly gains as Gulf disruptions from the Middle East conflict broadly \u200cpersisted.<\/p>\n
Brent futures for May declined 63 cents, or 0.6%, to $99.83 a barrel at 1124 GMT, heading for a weekly increase of 8%. U.S. West Texas Intermediate (WTI) crude for April declined $1.29, or 1.4%, at $94.44 a barrel, set for a 4% uptick for the week.<\/p>\n
An India-flagged oil tanker moved out from the east of the Strait of Hormuz carrying gasoline bound for Africa, an Indian government \u200bofficial said on Friday.<\/p>\n
“Some oil is coming through the strait, but it does not mean it will reopen,” said Tamas Varga, an oil \u200banalyst at brokerage PVM. “This dip should be viewed as short-lived.”<\/p>\n
The U.S. issued a 30-day license for countries to buy Russian oil and \u2060petroleum products stranded at sea. Treasury Secretary Scott Bessent said it was a step to stabilise global energy markets roiled by the U.S.-Israeli war on Iran.<\/p>\n
This will affect 100 \u200bmillion barrels of Russian crude, equal to almost a day’s worth of global output, according to Russia’s presidential envoy Kirill Dmitriev.<\/p>\n
“Russian oil was already going to buyers; \u200bthis is not bringing additional barrels to the market but it does reduce some friction,” said Bjarne Schieldrop, chief commodities analyst at SEB.<\/p>\n
“The market is starting to get very concerned that this (war) is going to last longer. The big fear is that we have severe damage to oil infrastructure, which would be a lasting loss of supply.”<\/p>\n
The announcement on Russian oil came \u200ba day after the U.S. Energy Department said Washington would release 172 million barrels of oil from its Strategic Petroleum Reserve to help curb skyrocketing oil prices.<\/p>\n
That plan was \u200bcoordinated with the International Energy Agency, which has agreed to release a record 400 million barrels of oil from strategic stockpiles, including the U.S. contribution.<\/p>\n
Fleeting relief sparked by the IEA release, \u200chowever, was \u2060shattered by a re-escalation of Middle East risks, IG analyst Tony Sycamore said in a note.<\/p>\n
Iran’s new Supreme Leader Ayatollah Mojtaba Khamenei said Iran would fight on, and keep the Strait of Hormuz shut as leverage against the United States and Israel.<\/p>\n
Two fuel tankers in Iraqi waters were struck by explosives-laden Iranian boats, Iraqi security officials said on Thursday. An Iraqi official told state media the country’s oil ports have completely stopped operations.<\/p>\n
U.S. President Donald Trump said on Thursday the United States stood \u200bto make significant money from oil prices, driven \u200bhigher by the war with Iran. \u2060But stopping Iran from getting nuclear weapons was far more important, he said.<\/p>\n
Both benchmark prices surged more than 9% on Thursday and hit their highest levels since August 2022.<\/p>\n
Goldman Sachs predicted on Friday that Brent oil would average more than $100 \u200ba barrel in March and $85 in April, as energy prices remain volatile due to the Iran war, damage to \u200bMiddle East energy infrastructure \u2060and disruptions in the Strait of Hormuz.<\/p>\n
Brent is better supported than WTI because Europe is more susceptible to energy security issues, while the U.S. is able to stave off its exposure due to its domestic output, said Emril Jamil, senior analyst at LSEG.<\/p>\n
In another sign the disruptions may drag on, sources told Reuters that Iran had deployed \u2060about a dozen \u200bmines in the strait, a move that is likely to complicate the reopening of the critical \u200bwaterway.<\/p>\n
Meanwhile, U.S. Treasury Secretary Scott Bessent told Sky News in an interview that the U.S. Navy, perhaps with an international coalition, would escort vessels through the Strait of Hormuz when it is militarily possible.<\/p>\n
Reporting by \u200bAnna Hirtenstein for Reuters<\/strong><\/a><\/p>\n