NEW YORK: Oil prices gained more than 5% during the week after stalled US-Iran talks raised fears of prolonged supply disruptions through the Strait of Hormuz.
Brent crude settled at $88.52 a barrel Friday, August 14. The global benchmark gained 1.7% during the session and 5.9% for the week.
US West Texas Intermediate crude closed 1.4% higher at $82.40. It recorded a weekly increase of 5.4%, according to the Wall Street Journal.
Negotiations have failed to reach an agreement to fully reopen the Strait of Hormuz. Therefore, markets remain concerned about exports from the Persian Gulf.
The International Energy Agency said regional disruptions had removed significant volumes from global markets. Its August oil report forecast global supply would fall by 4.3 million barrels per day in 2026.
The IEA also said observed oil inventories had declined by 410 million barrels since the war began. However, higher fuel prices could reduce global demand by 1.6 million barrels per day this year.
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Weak US economic data provided a counterweight to the supply concerns. Commerce Department data showed retail sales fell 0.6% in July, their first decline in nine months.
Meanwhile, the University of Michigan’s preliminary consumer sentiment index dropped from 55.2 in July to 51.0 in August.
