Oil prices steady after Oman confirms operations remain normal following explosion

Oil prices were little changed on Friday after Oman confirmed that operations at Mina Al Fahal were proceeding normally, following reports of disruptions caused by an explosion near the port.

Petroleum Development Oman said port operations had not been affected after Reuters cited three sources saying that oil loading activities had been halted following an explosion near the shipping berths.

Oman exports between 800,000 and 900,000 barrels of crude oil per day through the port.

Brent crude futures rose 6 cents, or 0.06%, to $95.09 per barrel by 11:21 GMT, after closing 2.84% lower on Thursday.

US West Texas Intermediate crude gained 15 cents, or 0.16%, to $93.19 per barrel, following a 3.1% decline in the previous session.

Despite the recent pullback, both benchmarks remain on track for their first weekly gains in three weeks, with Brent up about 4.2% and WTI advancing roughly 6.7%.

Prices have been supported by escalating fighting in the Middle East and the continued lack of progress in peace talks between the United States and Iran, while shipping traffic through the Strait of Hormuz remains restricted. Roughly one-fifth of global oil supplies normally pass through the strategic waterway.

Analysts at Commerzbank said Brent crude and European natural gas prices rose modestly this week after hopes for a breakthrough between Washington and Tehran faded once again.

However, the bank noted that Brent’s gains remain limited due to higher-than-expected oil inventories, rerouted export flows, and weak global demand.

Meanwhile, Hezbollah Secretary-General Naim Qassem rejected a US-brokered agreement between Israel and the Lebanese government on Thursday aimed at ending hostilities. Iran has also made a ceasefire in Lebanon a condition for any peace agreement with Washington.

US President Donald Trump said he believes progress is being made between Israel and Lebanon, adding that Lebanon “deserves peace.”

Tony Sycamore, market analyst at IG, said any optimism remains clouded by a constant stream of conflicting headlines and statements.

At the same time, OPEC maintained its forecast for global oil demand growth of 1.2 million barrels per day this year despite the Middle East conflict and the closure of the Strait of Hormuz, according to Secretary General Haitham Al Ghais.

Shipping data also showed that Iranian oil exports have fallen to their lowest level in six years, primarily due to the US naval blockade, although weaker Chinese demand has also weighed on prices for Iranian crude.