WEB DESK: Global oil prices edged lower on Friday, though analysts say the decline reflects a temporary pause rather than a lasting shift in market direction.
Benchmark Brent Crude retreated to around $109 per barrel after briefly nearing $120 a day earlier, while West Texas Intermediate hovered in the upper-$90 range. The pullback comes amid aggressive efforts by the United States to stabilise supply rather than any major improvement in underlying market conditions.
Washington is actively pursuing multiple measures to ease pressure, including coordinating with allies to ensure uninterrupted shipping through the Strait of Hormuz a critical route that handles a significant share of the world’s oil and liquefied natural gas.
Among the options being considered are easing restrictions on Iranian oil exports, releasing additional reserves from strategic stockpiles, and building a coalition with partners such as Europe, Japan, and Canada to safeguard maritime routes. Reports also indicate an increased US military presence in the Middle East to reinforce these efforts.
Despite these moves, market sentiment remains cautious. Ongoing disruptions including damage to refineries and energy infrastructure have already reduced supply, with recovery timelines expected to stretch over months or even years.
The widening gap between Brent and WTI prices, now at its highest level in more than a decade, further highlights structural imbalances. While US crude remains relatively contained domestically, global benchmarks continue to reflect heightened geopolitical risks and shipping uncertainties.
Although prices have eased for now, analysts warn that the overall market remains tight. Continued constraints in key transit routes mean oil prices are likely to stay elevated, with any further escalation capable of triggering another sharp surge.
