Oil prices moved lower on Friday as oil shipments continued to pass through key shipping routes, easing concerns about supply disruptions despite little progress in ongoing talks between the United States and Iran.
Brent crude futures fell by $1.03, or 1.2%, to $88 per barrel. Meanwhile, U.S. West Texas Intermediate (WTI) crude dropped $1.50, or 1.8%, to $82.09 per barrel.
Despite the daily decline, both oil benchmarks remain on track to post strong monthly gains of around 20%.
ANZ analyst Daniel Hynes said the drop in prices was driven by signs that oil flows through the Strait of Hormuz have increased, helping reduce fears that rising tensions in the Middle East could disrupt global energy supplies.
While geopolitical risks remain a concern for markets, the continued movement of oil through one of the world’s most important shipping routes has helped calm supply worries and put some pressure on prices.
