Doha, Qatar: Oil prices fluctuated in volatile trading on Friday but ended the week higher, as traders weighed supply disruptions against the potential resumption of peace talks between the US and Iran.
Brent crude futures settled at $105.33, while US West Texas Intermediate (WTI) crude finished at $94.40. For the week, Brent rose 16.5%, and WTI gained 12.6%.
Navigation through the Strait of Hormuz—through which around a fifth of global oil supply passed before the conflict—remains effectively blocked. Only five ships transited the strait on Friday. Meanwhile, Iran’s capture of two cargo vessels has underscored Washington’s difficulties in maintaining control over the passage.
As tensions escalated last week, with no progress towards a meeting between the US and Iran, analysts said any open-ended ceasefire would likely coincide with a continuation of the conflict.
Asia spot liquefied natural gas (LNG) prices inched up last week on continued geopolitical uncertainty over US-Iran peace talks and as the Strait of Hormuz continued to be blocked.
The average LNG price for June delivery into northeast Asia was $16.70 per million British thermal units, up from $16.05 per mmBtu the week before.
Analysts say concerns are rising that demand displacement in Asia may slow, as supply deficits linked to the Iran conflict persist, particularly given China’s limited LNG storage flexibility.
In Europe, the Dutch TTF gas price settled at $15.23 per mmBtu, posting a weekly gain of 12.4%.
Meanwhile, the market is adjusting to the arrival of incremental volumes, most notably the first cargo from the US Golden Pass LNG facility, which is expected to land in Europe.
