Oil prices have risen due to events in Oman and the situation surrounding Iran

On Friday, June 5, global oil prices rose after a significant decline during the previous trading session. The market was influenced by news of the suspension of oil loading at the Mina al-Fahad terminal in Oman following an explosion, as well as continued uncertainty regarding negotiations between the U.S. and Iran. An additional factor was Hezbollah’s refusal to support a new proposal for a ceasefire in Lebanon.

Brent crude oil futures rose 33 cents, or 0.35%, to $95.36 per barrel after falling 2.84% in the previous trading session.

The price of U.S. West Texas Intermediate (WTI) crude rose by 2 cents, or 0.02%, to $93.06 per barrel on Friday morning, following a 3.1% decline on Thursday.

Both grades are expected to post their first weekly gain in the past three weeks. The price of WTI crude rose by more than 6% amid escalating tensions in the Middle East, as peace talks between the U.S. and Iran dragged on and shipping in the Strait of Hormuz remained restricted.

According to Reuters, the Mina al-Fahad terminal in Oman suspended oil loading after an explosion near the docks, likely caused by a drone attack.

Analysts also expressed concern about falling global oil inventories, which could trigger a sharp rise in prices in the third quarter.

“Any optimism remains heavily clouded... From a technical perspective, as long as the price of oil (WTI) remains above the support level corresponding to the trend line in the lower $80 range, the risks remain skewed to the upside,” said IG market analyst Tony Sycamore.

OPEC Secretary-General Haitham Al-Ghais said on Thursday that despite the conflict in the Middle East and the closure of the Strait of Hormuz, he is sticking to his forecast of oil demand growth at 1.2 million barrels per day for this year.