Shafaq News
Crude prices sank 2% on Friday and were headed forsteep weekly losses amid easing supply concerns as more stranded oil tankersexited the Strait of Hormuz, even though a cargo vessel was hit near Oman onThursday.
Brent crude futures fell $1.47, or 1.95%, to $73.79 abarrel as of 0421 GMT, while U.S. West Texas Intermediate fell $1.44, or 2%,to $70.48 a barrel.
Refining giant Saudi Aramco resumed oil loading onFriday at its Ras Tanura terminal in the Gulf after a near four-month halt,shipping data from LSEG showed. Two Very Large Crude Carriers were seenloading crude at the terminal, while another waited nearby, the data showed. Each VLCC is capable of loading 2 million barrels of oil.
"There is a general selloff as the market reactsto the increased flows exiting the Strait of Hormuz and China not yet pickingup crude demand," said June Goh, senior oil market analyst at SpartaCommodities.
Both benchmark contracts jumped more than 2% onThursday after a cargo vessel was hit by an unknown projectile near Oman,prompting the U.N.'s shipping agency to suspend its voluntary evacuationscheme.
Two U.S. officials told Reuters that Iran fired on thecargo ship as it attempted to pass through the strait. Iranian authoritiessaid the security of vessels passing outside designated Hormuz routes is notguaranteed.
Brent oil and WTI crude are both headed for losses ofaround 8% this week.
Data showed on Thursday that crude shipments throughthe Strait of Hormuz rose this week to their highest level since theU.S.-Israeli conflict with Iran began in February after a ceasefire dealreopened the waterway, while concerns about how long the strait would stay openalso boosted trade.
However, overall traffic remain a fraction of thedaily average of 125 ships passing through the strait before the February 28conflict began.
"Much of the increase reflects previouslystranded vessels leaving the Persian Gulf. Vessel flows into the Gulf remainmuch more modest. It suggests that once stranded vessels have moved out, wecould see a pullback in flows," ING analysts wrote in a note.
Meanwhile, earthquakes in Venezuela that happened onThursday also raised supply concerns.
Preliminary assessments by workers of Venezuela's vastoil, gas and refining infrastructure so far showed limited damage, as most ofthe country's largest output regions, refineries, pipelines and terminals arefar from the hardest-hit areas.
Still, a lack of power has cast doubt on whether oiloutput can be sustained at its pre-earthquake level of close to 1.2 millionbarrels per day, sources said.
(Reuters)
Only the headline is edited by Shafaq News Agency.
