Oil prices dip as Indian tanker passes through Strait of Hormuz
Oil prices eased at noon Friday as Donald Trump lifted sanctions on Russian oil in a bid to stabilize global energy markets and reported an Indian tanker had left the Strait of Hormuz.
Brent crude oil (BZ=F) futures fell 1.6% to $98.89 per barrel, while West Texas Intermediate (CL=F) fell 2.2% to $93. at the time of writing this article.
The U.S. Treasury Department on Monday night issued waivers allowing Russian oil stranded at sea to be shipped globally through April 11. Officials expected the move to add hundreds of millions of barrels to the market and hoped it would push prices below $100.
The price drop came after an Indian government official confirmed that the Indian-flagged oil tanker Jag Prakesh had cleared the eastern entrance of the Bosphorus carrying gasoline destined for Africa.
Neil Wilson, investor strategist at Saxo UK, commented: “Crude oil prices fell around 2% after India announced an oil tanker had sailed through the Strait of Hormuz. Brent fell below $99 a barrel.” he said.
“It’s too early to comment or speculate on what this means, but markets are still keen on the headlines and eager to get caught up on any good news. Expect this to fade.”
LSEG senior analyst Emril Jamil said: “ICE brent futures have already surpassed $100 a barrel and are still supported today despite moves to calm markets with a Russian oil waiver and an unprecedented release of emergency stocks.
“The market sees this as a short-term solution that does not address the bottom line of the supply disruption. Crude intermonth spreads for the coming months indicate an unresolved and ongoing contraction in supply.”
Read more: FTSE 100 LIVE: London shares and oil begin to recover as US eases sanctions on Russian oil
Analysts at Goldman Sachs (GS) raised their forecasts for international benchmark Brent crude oil (BZ=F) to $71 per barrel from $66 per barrel for the fourth quarter of 2026. US crude oil is expected to average $67 in the last quarter; There is an increase since the previous estimate of $62.
Brent is expected to average $98 per barrel in March and April. However, the bank said that in the upside risk scenario where the flow through the Bosphorus will be interrupted for a month, prices may rise up to $110.
Susannah Streeter, chief investment strategist at Wealth Club, said: “Multiple interventions, including the unprecedented release of 400 million barrels of emergency supplies coordinated by the International Energy Agency, have failed to assuage growing concerns about severe disruptions to global oil production and distribution.
