Oil prices fell slightly today as potential supply disruptions were assessed after US directives on ships passing through the Strait of Hormuz drew attention to tensions between Washington and Tehran.
Brent crude oil futures fell 25 cents, or 0.4%, to $68.79 a barrel. U.S. West Texas Intermediate crude oil fell 23 cents, or 0.4%, to $64.13.
This comes after prices rose by more than 1% yesterday after the US Department of Transportation’s Maritime Administration advised US-flagged commercial ships to stay as far away from Iranian territorial waters as possible.
moderate risk
“Following a cautiously positive tone in the Oman talks, there remains uncertainty about the potential for further sanctions, tougher sanctions and supply disruptions in the Strait of Hormuz, which remains a moderate risk premium,” specialist research firm analyst Tony Sycamore said in a note to clients.
Meanwhile, the European Union has proposed extending sanctions against Russia to include ports in Georgia and Indonesia that handle Russian oil, marking the first time the bloc has targeted ports in a third country.
The move was part of an effort to tighten sanctions on Russian oil, the Kremlin’s main source of income, because of the war in Ukraine.
Oil prices fell slightly today as potential supply disruptions were assessed after US guidance on ships passing through the Strait of Hormuz drew attention to tensions between Washington and Tehran.
Brent crude oil futures fell 25 cents, or 0.4%, to $68.79 a barrel. U.S. West Texas Intermediate crude oil fell 23 cents, or 0.4%, to $64.13.
This followed a more than 1% increase in prices yesterday when the US Coast Guard advised US-flagged commercial vessels to stay as far away from Iranian territorial waters as possible.
moderate risk
Tony Sycamore, an analyst at the specialist research firm, said in a client note: “After talks in Oman ended on a cautiously positive tone, uncertainty around increased sanctions, tougher sanctions and potential supply disruptions in the Strait of Hormuz remains a modest risk premium.”
Meanwhile, the European Union has proposed extending sanctions against Russia to include ports in Georgia and Indonesia that handle Russian oil, marking the first time the EU has targeted ports in a third country.
The move is part of an effort to tighten sanctions on Russian oil, the Kremlin’s main source of revenue, because of the war in Ukraine.
