Will petrol and diesel get cheaper? Crude oil prices are falling again
Global crude oil prices extended their decline on Friday, with Brent crude slipping below $75 a barrel as oil shipments through the Strait of Hormuz increased following the reopening of the strategic waterway after a ceasefire.
Crude oil prices continued to weaken on Friday as concerns over supply disruptions eased, with more oil tankers successfully transiting the Strait of Hormuz after the waterway reopened following a ceasefire agreement.
Brent crude futures fell 0.56 per cent to $74.84 per barrel, dropping below the key $75 mark, while US West Texas Intermediate (WTI) crude declined 0.50 per cent to $71.56 per barrel. Both global benchmark contracts are on course to register weekly losses of nearly 7 per cent, marking one of their sharpest weekly declines in recent months.
The fall in prices comes after crude shipments through the Strait of Hormuz climbed to their highest level since the US-Iran conflict began in February. The increase in tanker movements has eased fears of prolonged supply disruptions through one of the world's most important oil transit routes.
Although shipping activity has improved following the ceasefire, overall traffic through the Strait of Hormuz remains below normal. Before the conflict erupted on February 28, the strategic waterway handled an average of around 125 ships every day. Current vessel movements are still well below those levels, indicating that shipping operations are gradually recovering.
Oil prices had briefly rebounded by more than two per cent during the previous trading session after a cargo vessel near Oman was struck by an unidentified projectile, reviving concerns over maritime security. Iranian authorities also warned that the safety of ships travelling outside designated Hormuz routes could not be guaranteed, adding uncertainty to regional shipping.
Meanwhile, fresh earthquakes in Venezuela also drew attention from energy markets because of the country's major oil and gas infrastructure. However, early assessments suggested that the quakes caused only limited damage, preventing any significant impact on crude production or exports.
Market analysts say investors are closely monitoring developments in the Middle East, particularly shipping activity through the Strait of Hormuz, as well as geopolitical tensions that could influence global energy supplies in the coming weeks.