Oil prices dipped Friday as an Indian tanker sailed out of the Strait of Hormuz and the U.S. enacted measures to alleviate supply worries. However, prices remain on track for weekly gains due to ongoing Gulf disruptions from the Middle East conflict.
Brent futures for May fell 0.6 percent to $99.83 a barrel, heading for an 8 percent weekly increase. U.S. West Texas Intermediate (WTI) crude for April declined 1.4 percent to $94.44 a barrel, set for a 4 percent weekly uptick.
An India-flagged oil tanker carrying gasoline for Africa departed the Strait of Hormuz. Analysts suggest the current dip is likely short-lived.
The U.S. issued a 30-day license to allow countries to purchase Russian oil and petroleum products stranded at sea, a move aimed at stabilizing global energy markets. This license affects approximately 100 million barrels of Russian crude.
Earlier, the U.S. Energy Department announced plans to release 172 million barrels of oil from its Strategic Petroleum Reserve, coordinated with the International Energy Agency's release of 400 million barrels. These measures offered fleeting relief before Middle East risks re-escalated.
Amid heightened tensions, Iran's Supreme Leader stated Iran would continue its actions and keep the Strait of Hormuz shut. Reports indicate two fuel tankers in Iraqi waters were struck by Iranian boats, leading to a complete halt of operations at Iraq's oil ports.
Goldman Sachs predicts Brent oil will average over $100 a barrel in March and $85 in April, citing volatility from the Iran war, Middle East infrastructure damage, and Strait of Hormuz disruptions. The U.S. Treasury stated the U.S. Navy may escort vessels through the Strait when militarily feasible.