DTN Oil Update
Oil Prices Eyes 2nd Weekly Loss On Hormuz Deal Hopes
SECAUCUS, N.J. (DTN) -- Crude and oil product futures held steady on Friday morning while eyeing a second straight weekly loss on trade expectations for a peace deal for the Middle East and its key energy waterway, the Strait of Hormuz.
By 9:15 a.m. EDT, NYMEX WTI crude for October delivery was down $0.55, or 0.7%, at $75.61 bbl. For the week, it was down 9%, extending the prior week's 5% drop.
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ICE Brent crude for October slid $0.62, or 0.8%, to $81.87 bbl. Like WTI, it was down 9% week-on-week, after a prior weekly loss of 7%.
Among refined products, NYMEX ULSD for September retreated by $0.0220, or 0.6%, to $3.8600 gallon. September RBOB climbed $0.0147, or 0.5%, to $2.9532 gallon.
After Thursday's rally of 3% in crude futures, prices steadied as market participants evaluated reports that Iran and neighboring Gulf states were negotiating a temporary deal to reopen the Strait of Hormuz.
The potential arrangement aims to allow broader diplomatic discussions to end the regional conflict, though significant political and logistical hurdles remain.
Iran has proposed charging transit fees between 5% and 7% on cargoes passing through the strait, while Washington opposes any toll structure.
Industry sources warned that existing U.S. sanctions and insurance constraints would make executing payments under the proposed framework extremely difficult.
Security concerns also persist across the region as Saudi Arabia warned of potential incoming attacks targeting key energy infrastructure and economic facilities.