Oil heads for weekly loss on Hormuz traffic rebound
- Oil prices were set for a sharp weekly decline as tanker traffic in the Strait of Hormuz rebounded.
- Brent crude traded at $73.78 and WTI at $70.53 despite brief disruption from a reported vessel strike.
- Analysts said outbound tanker flows are rising, but inbound crude shipments remain subdued versus pre-war levels.
Crude oil prices fell on track for a weekly loss as shipping activity in the Strait of Hormuz showed signs of recovery and tanker traffic increased.
Brent crude traded at $73.78 per barrel while West Texas Intermediate changed hands at $70.53, even after a reported Iranian strike on a commercial vessel briefly pushed prices about 2% higher.
The strike was said to involve a vessel using a route not approved by Iranian authorities, but the impact on prices faded as broader shipping flows improved.
Analysts at ING said most current traffic increases consist of outbound tankers that had been previously stuck in the strait rather than new inflows of crude carriers entering the region.
ING analysts said vessel entries into the Persian Gulf remain limited, suggesting that overall flows could weaken once stranded ships clear the system.
Reuters reported that while tanker traffic has increased, overall movement through the Strait of Hormuz remains well below pre-war levels of around 125 ships per day.
