Traders weighed geopolitical risks against expectations of weaker weekly performance for crude.
Oil prices advanced during Friday’s trading as uncertainty related to the reopening of the Strait of Hormuz persisted, although both benchmark crude contracts remain on track to post weekly losses of around 8%. 
The move comes as an Iranian parliamentary committee discusses a preliminary bill that would prohibit US, Israeli, and other vessels deemed “hostile” from transiting the Strait of Hormuz, according to Iran’s Fars News Agency.
Tehran is also seeking to impose transit fees at 5-7% of cargo value, while Oman is considering a 3% fee. Washington, meanwhile, continues to reject any transit charges, according to Reuters.
Four industry sources said the proposed agreement would be difficult to implement because US sanctions and insurance contracts restrict any payment mechanisms.
Markets are also awaiting the release later today of Baker Hughes’ US oil and gas rig count data for further indications on the outlook for US energy supplies.
Benchmark Crude Futures
Crude
Price ($/barrel)
Change ($)
Change (%)
Brent (October)
83.74
+1.25
+1.50%
WTI (September)
78.31
+1.02
+1.30%
As of 07:59 a.m. Makkah time.
Traders weighed geopolitical risks against expectations of weaker weekly performance for crude.
Oil prices advanced during Friday’s trading as uncertainty related to the reopening of the Strait of Hormuz persisted, although both benchmark crude contracts remain on track to post weekly losses of around 8%.
The move comes as an Iranian parliamentary committee discusses a preliminary bill that would prohibit US, Israeli, and other vessels deemed “hostile” from transiting the Strait of Hormuz, according to Iran’s Fars News Agency.
Tehran is also seeking to impose transit fees at 5-7% of cargo value, while Oman is considering a 3% fee. Washington, meanwhile, continues to reject any transit charges, according to Reuters.
Four industry sources said the proposed agreement would be difficult to implement because US sanctions and insurance contracts restrict any payment mechanisms.
Markets are also awaiting the release later today of Baker Hughes’ US oil and gas rig count data for further indications on the outlook for US energy supplies.
Benchmark Crude Futures
Crude
Price ($/barrel)
Change ($)
Change (%)
Brent (October)
83.74
+1.25
+1.50%
WTI (September)
78.31
+1.02
+1.30%
As of 07:59 a.m. Makkah time.
