Oil Prices Head for Weekly Gains Despite US Russia Sanctions Waiver

Middle East War – (Web Desk) – Oil prices were moving toward weekly gains on Friday. This happened even after the United States allowed a 30 day license for countries to buy Russian oil and petroleum products that are stuck at sea. The step was taken to reduce worries about global oil supply.

By 0400 GMT, Brent crude for May delivery increased by 10 cents. The price reached 100.56 dollars per barrel. This means Brent is likely to rise about 9 percent this week. At the same time, US West Texas Intermediate crude for April delivery fell by 16 cents to 95.57 dollars per barrel. Even with the small drop, WTI is still expected to record a weekly gain of about 7 percent.

The US government said the temporary license was meant to calm global energy markets. Treasury Secretary Scott Bessent said the step was part of efforts to stabilise markets affected by the ongoing tensions linked to the US Israeli conflict with Iran.

However, many analysts believe the move will only help for a short time. They say the main problem of limited oil supply has not been solved yet.

Energy analyst Emril Jamil from LSEG said Brent crude has already crossed 100 dollars per barrel. According to him, prices are still strong even after efforts to calm the market through the Russian oil waiver and emergency oil releases.

He explained that the market sees these steps as temporary. They do not fix the deeper supply problem. Oil prices for future months also show that supply could stay tight.

Experts also say Brent prices are getting more support than WTI. This is because Europe depends more on imported energy. The United States has less pressure since it produces a large amount of oil at home.

Another analyst, Yang An from Haitong Futures, said the license did help reduce some market fears. Still, he believes the bigger issue remains. According to him, the most important factor is restoring safe shipping through the Strait of Hormuz.

The Russian oil decision came a day after the US Energy Department announced another step. The government said it will release 172 million barrels of oil from the US Strategic Petroleum Reserve. The goal is to control rising oil prices and support global supply.

That plan was coordinated with the International Energy Agency, which ​has agreed to release a ​record 400 million barrels of oil ⁠from strategic stockpiles, including the US contribution.

Fleeting relief sparked by the IEA release, however, was shattered by a re-escalation of Middle East risks, IG analyst Tony Sycamore said in a ​note.

Both benchmark prices surged more than 9% on Thursday and hit their highest levels since ​August 2022.

Iran’s new ⁠supreme leader Mojtaba Khamenei said Iran would fight on and keep the Strait of Hormuz shut as leverage against the United States and Israel.

PNSC Oil Tankers Safely Reach Karachi Under Pakistan Navy Escort

Two fuel tankers in Iraqi waters were struck by explosive-laden Iranian boats, Iraqi security officials said on Thursday. An Iraqi official ⁠told state ​media that the country’s oil ports have completely stopped operations.

Meanwhile, US Treasury ​Secretary Scott Bessent told Sky News in an interview that the US Navy, perhaps with an international coalition, would escort vessels through the Strait of Hormuz ​when it is militarily possible.