The weekly report of the Al-Attiyah International Energy Foundation confirmed that Brent crude prices rose by more than a dollar per barrel on Friday, in light of the uncertainty surrounding the ongoing negotiations regarding arrangements for controlling the Strait of Hormuz and reopening it to shipping traffic, as it is one of the most important sea lanes for global trade.
Upon settlement, Brent crude futures reached $83.55 per barrel, while US West Texas Intermediate crude ended trading at $78.18 per barrel. Despite Friday’s gains, both crude oils recorded weekly losses, as Brent fell by 7.3%, compared to a decline in West Texas Intermediate crude by 7.7%.
In parallel, it was reported that Iran and Oman reached an agreement on the route that ships will take through the strait between the two countries, but the United States’ position on these arrangements is still unresolved.
Regarding transit fees, a senior Iranian official said that Tehran seeks to impose fees ranging between 5% and 7% of the value of ship shipments using the strait. On the other hand, Oman is discussing fees in the range of 3%, while Washington insists on not imposing any fees on the movement of ships through the sea lane. Spot prices for liquefied natural gas in Asia fell during the week, but remained close to their highest levels in four months, at a time when the war between the United States and Iran kept supply and shipping risks at the forefront of market concerns. On the other hand, the growing interest of buyers in South Asia contributed to compensating for the sluggish demand from Japan and China.
The average LNG price for cargoes scheduled for delivery to Northeast Asia in September was $20.40 per million British thermal units, down from $21.35 the previous week. Much of the flexibility in the spot market is due to contracted quantities from the United States, which Chinese and Japanese buyers resell in the market rather than take delivery.
As for Europe, the price of Dutch gas stabilized at $18.70 per million British thermal units, recording a weekly loss of 5.1%. Meanwhile, LNG prices in northwest Europe declined as geopolitical risk premiums eased, following reports that US President Donald Trump announced plans to hold talks with Iran.
