Global oil prices eased on Friday as signs of improving tanker traffic through the Strait of Hormuz tempered supply concerns, although crude remained on track to record its strongest monthly performance in nearly two years after weeks of conflict in the Middle East.
At the time of writing, Brent crude traded at $88 per barrel, down 1.16 percent. Meanwhile, West Texas Intermediate (WTI) fell by 1.34 percent to $82.47 per barrel.
Despite the decline, both benchmarks are set to post gains of nearly 20 percent for July, reflecting the sharp geopolitical risk premium triggered by the conflict between the United States and Iran, which disrupted shipping through the Strait of Hormuz and sent Brent briefly above $100 per barrel earlier this month.
The latest pullback followed reports that more oil tankers had resumed crossing the Strait of Hormuz, easing fears of prolonged supply disruptions through the world’s most important oil transit route.
“There is this sense that there is a lot of supply waiting to hit the market once all of this is resolved, and that is a weight against any kind of dramatic price rise,” John Kilduff, partner at Again Capital, told Reuters.
