Oil Prices Fall as Hormuz Disruption Keeps Supply Risks in Focus
Brent crude for November delivery fell 1% to $93.66 a barrel, while West Texas Intermediate declined 0.68% to $105.86 a barrel Friday.
Oil prices fell Friday as markets continued to assess risks around the Strait of Hormuz, where observable commodity-vessel traffic has dropped sharply amid ongoing U.S.-Iran tensions.
Brent crude futures for November delivery fell 1% to $93.66 a barrel. West Texas Intermediate futures for November declined 0.68% to $105.86 a barrel.
Traffic data showed only three observable commodity-vessel crossings through the strait over the latest 24-hour period, 80% below the 10-day average. The measure covers AIS-visible vessels and may exclude ships that were not transmitting.
U.S.-Iran contacts remain active on the sidelines of the U.N. General Assembly in New York, but there is still no confirmed deal to restore navigation through the strait. The developments extend earlier Hormuz coverage.
“It is understood that the two sides have been communicating via mediators,” said David Morrison, senior market analyst at Trade Nation.
Morrison said investors remain concerned about persistent inflation, higher energy costs and bellicose statements from U.S. and Iranian officials at the assembly.
The price move keeps attention on the strait, a key route for global energy supplies, as markets weigh the effect of reduced observable shipping activity.
Further developments in U.S.-Iran contacts and navigation through the strait remain the next concrete indicators for oil markets.
