Brent Crude Volatile Around $88

Brent crude oil traded around $88 a barrel on Thursday after three consecutive sessions of losses, as markets weighed improving supply prospects through the Strait of Hormuz against growing disruptions to Russian energy exports. Iran’s military said it had reached a revenue-sharing agreement with Oman over the strategic waterway, raising hopes that shipping disruptions could ease. However, Tehran stressed that the arrangement does not guarantee an immediate reopening of the strait, keeping uncertainty elevated. Saudi Arabia also appears to be increasing oil loadings from Persian Gulf terminals as it seeks alternatives to routes exposed to Houthi attacks in the Red Sea. Meanwhile, concerns are growing over potential further escalation of the Russia-Ukraine war. Continued Ukrainian strikes on Russian refineries and ports are disrupting the country’s energy infrastructure and could limit its ability to export crude and refined products.

Brent crude fell below $87 per barrel on Thursday, extending its decline to a fourth straight session amid signs of diplomatic progress in the Middle East. Iran and Oman reached an agreement over each country’s share of the Strait of Hormuz’s waters and related revenues, although Tehran cautioned that reopening the crucial waterway would require more than an agreement with Oman. Meanwhile, President Donald Trump said 10 million barrels of oil had passed through Hormuz on Tuesday, while reiterating claims that mines in the waterway had been cleared. Oil prices have also come under pressure this week after fresh US economic sanctions on Iran proved less aggressive than markets had feared, with the White House so far sparing Iran’s trading partners from tougher measures. Elsewhere, Russian President Vladimir Putin was reportedly planning an escalation in Ukraine, keeping risks to global energy supplies in focus.

Brent crude oil pared earlier losses and traded just below $89 a barrel on Wednesday, following two consecutive sessions of declines, as signs of increased flows from the Persian Gulf eased supply concerns. Traders are closely watching talks between Iran and Oman over a possible arrangement to restore shipping through the Strait of Hormuz. US President Donald Trump said around 10 million barrels of oil had passed through the waterway on Tuesday, raising hopes that disruptions may be easing. Meanwhile, satellite data indicated that Saudi Arabia could be increasing oil loadings from terminals inside the Persian Gulf. At the same time, Iran and Oman are reportedly discussing broader arrangements for managing Hormuz, although uncertainty remains over whether Washington would accept an agreement excluding the US. In the US, EIA data showed crude inventories were virtually unchanged last week, while gasoline and diesel stocks fell to seasonal lows.