Oil prices declined on Friday 11 September but remained set to end the week over $100 per barrel (bbl), marking the first weekly close at this level since mid-May.
The week saw increased concerns over supply disruptions due to ongoing attacks along key Middle East shipping routes. US diesel prices also rose to a record high.
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As of 07:58 GMT, Brent crude futures were down by $1.65, or 1.53%, to $105.98/bbl, reported Reuters.
Meanwhile, US West Texas Intermediate (WTI) crude had dropped by $1.36, or 1.33%, to $101.12/bbl.
Despite Friday’s declines, both benchmarks had gained more than 10% on the week and surged more than 6% on Thursday.
Prices eased after a Financial Times report, as cited by Reuters, indicated Middle Eastern foreign ministers are seeking a temporary arrangement with Iran to facilitate shipping through the Strait of Hormuz.
This development followed reports that Iran carried out attacks on ten ships near the strait on Wednesday after the US targeted five Iranian oil tankers.
Iran’s Islamic Revolutionary Guard Corps stated it would escalate its response to further attacks.
Ship-tracking data showed vessel transits in the Strait of Hormuz dropped to seven on Thursday from 11 the previous day, well below the ten-day average of 15.
The strait previously managed apporoximately 20% of the world’s daily oil and liquefied natural gas shipments before the onset of the conflict with Iran in late February.
Additional disruptions surfaced as Houthi forces aligned with Iran took control of Yemen’s port of Mocha on Thursday, raising further concerns over Red Sea trade. Meanwhile, ongoing hostilities have restricted Gulf shipping activity.
The International Energy Agency (IEA) said global oil supply and demand would fall more than previously projected this year, as ongoing hostilities have delayed the return of normal Middle East oil flows into 2027.
On the forecasting front, the Organisation of the Petroleum Exporting Countries (Opec) has reduced its forecast for global oil demand growth in 2026 to 380,000 barrels per day, its fifth downgrade in a row, reported Reuters.
Opec also raised its estimate for oil demand growth in 2027.
The group continues to anticipate a less severe impact from the Iran war on consumption than estimates from the IEA, which expects demand to decline in 2026.
