Crude oil prices slipped to a one-week low after Saudi Arabia resumed oil sales through Oman- stategic logistical workaround, easing fears of supply disruptions and cushioning a market heavily pressured by the ongoing West Asia conflict.
A drop of 1 percent was recorded in crude oil prices, extending losses for the third straight day. However, the per-barrel price remained above $100, despite alternative routes for oil transportation outweighing concerns over shortages due to cross-border attacks between Yemen’s Houthis and Saudi Arabia.
Brent crude futures dropped $1.01, or 1 percent, to $103.77 a barrel as of 00:20 GMT, while US West Texas Intermediate (WTI) futures decreased $1.03, or 1 percent, to $100.88 a barrel. Both benchmarks settled down roughly 1 percent on Thursday.
Preliminary shipping data released on Friday showed that only four cargo ships crossed the Strait of Hormuz on Thursday, down from six ships the previous day and well below the 10-day average of about 16 ships.
Irans IRGC on Friday claimed to have struck an oil tanker sailing under the Togolese flag in the Strait of Hormuz, state news agencysaid. ” The Togo-flagged oil tanker ‘Trend’ had been targeted and detained after a fire broke out on board,” the statement said, referring to an attempted “illegal passage” through the vital waterway.
According to reports, China has been urging Iran to help rein in the Houthis following an appeal from Saudi Arabia.
“Chinese officials did not issue any explicit threats or indicate that Beijing would seek to pressure Tehran economically if it failed to use its influence over the Houthis, the three Iranian sources said,” the report read.
Maneuvering a way out of the war, given that the Iran-aligned Shia group has often shown a willingness to cooperate and coordinate action to Tehran’s benefit, Ansar Allah leadership may listen if it gets a signal to de-escalate from Iran, China believes.
Reports have been making the rounds that the Yemeni government, in collaboration with Saudi Arabia, is attempting to prevent Houthi advances on several fronts, including the strategic Kahbub Mountains near Bab al-Mandeb and Taiz. The Saudi government is reportedly supporting Yemen with airstrikes in and around the city.