Oil prices on global markets rise on a weekly basis
Despite intraday drops, Brent and WTI crude oil prices are heading for a nine percent weekly increase.
Global benchmark Brent crude and US-type WTI crude prices are heading for an increase of about 9 percent on a weekly basis, despite retreating during the day. This activity in prices is driven by diplomatic signals from Iran, the situation in the Strait of Hormuz, moves by the Houthis in Yemen, and supply concerns.
Intraday price movements
Global benchmark Brent crude fell by 2.3 percent during the day to $105.15 per barrel.
The price of US-type WTI crude recorded a decrease of 2.73 percent to drop to $99.68.
Weekly general overview
While Brent crude saw the $108 level on Thursday, WTI crude climbed above $104.
Despite all these intraday pullbacks, both benchmarks are preparing for an increase of approximately 9 percent on a weekly basis.
Diplomatic signals
Iranian state media announced that Tehran will meet with Gulf countries in Oman to discuss the situation in the Strait of Hormuz.
This development indicated that diplomatic contacts continue even though tensions in the Middle East escalated throughout the week.
Process and expectations
Markets continue to price in the possibility that the war with Iran could last longer.
It was reported that senior advisers at the White House are evaluating the possibility that the conflicts could extend beyond the US President's term.
Geopolitical risks
Deutsche Bank analyst Jim Reid stated that the movement in oil prices is once again being shaped by geopolitical risks.
The capture of the port city of Moha in the southern Red Sea by the Houthis in Yemen has heightened concerns regarding maritime transport.
Developments on the supply side
Saudi Arabia's oil production falling to its lowest level since 1990 has reinforced supply risks.
PVM Oil Associates analyst Tamas Varga said that markets are focusing on whether the current supply deficit will be permanent.