Oil prices declined on Friday 5 June after Omani authorities said operations at the Mina al Fahal port were normal, despite reports of suspended loadings following an explosion.
By 07:04 GMT, Brent crude futures had dropped by $0.24, or 0.25%, to $94.79 a barrel (bbl), extending losses after a 2.84% fall in the previous session, reported Reuters.
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Meanwhile, US West Texas Intermediate (WTI) crude was down by $0.56, or 0.6%, trading at $92.48/bbl after a 3.1% decrease on Thursday.
Both oil contracts are on course for their first weekly increase in three weeks. WTI is tracking a gain of more than 6% for the week.
The increases come amid escalating conflict in the Middle East and protracted talks between the US and Iran, which have raised concerns over stability in a region that is crucial to global oil supply.
Limited shipping in the Strait of Hormuz, a key oil transit chokepoint, has further contributed to price volatility.
Petroleum Development Oman stated that Mina al Fahal port was functioning as usual, responding to earlier claims that oil loadings had been halted due to an explosion near its mooring areas.
The reported explosion took place near the single-buoy mooring (SBM) berths at the Mina al Fahal terminal, according to Reuters, citing three sources.
The explosion reportedly occurred between berths 1 and 2 at SBM, allegedly as a result of a drone attack.
Oman typically exports between 800,000 and 900,000 barrels per day (bpd) of crude from Mina al Fahal.
Shipping data from LSEG showed several supertankers anchored off the port on Friday after the event.
The specific timing of the blast remains unclear and Omani authorities had not issued a statement at the time of reporting.
Meanwhile, Iranian state media reported that Iranian forces had targeted a US military ship approaching its territorial waters in the Gulf of Oman. The US Central Command has denied those claims.
On the diplomatic front, Hezbollah rejected a US-brokered ceasefire proposal between Israel and Lebanon this week.
Meanwhile, the Organization of the Petroleum Exporting Countries is maintaining its oil demand growth forecast of 1.2 million barrels per day for the year, according to Secretary General Haitham Al Ghais.
At the same time, Iranian crude and condensate exports have reportedly dropped to their lowest levels in six years, below 300,000bpd in May. This is primarily due to a US naval blockade and reduced Chinese demand.
Separately, India’s Oil Minister, Hardeep Singh Puri, met with Venezuela’s interim President, Delcy Rodriguez, in New Delhi, where Indian companies expressed interest in further engaging in the Venezuelan energy sector, reported Reuters.
Rodriguez extended an invitation to an Indian energy delegation to explore opportunities in Venezuela, according to a statement from India’s Oil Ministry.
