Oil inches toward $90 on tanker attacks, lack of progress in Iran war peace deal

Crude oil prices edged closer to $90 per barrel on Friday due to tanker attacks and the absence of a peace deal between the United States and Iran. Brent futures rose to $88.52 per barrel, while U.S. West Texas Intermediate crude futures hit $82.40 per barrel. Analysts predict a 6.0% weekly gain for Brent and a 5.4% increase for WTI.

The rally was spurred by recent attacks on tankers and the lack of progress on a cease-fire agreement. Andrew Lipow, president of Lipow Oil Associates, stated that the situation may cause a reckoning if traffic through the Strait of Hormuz continues to be restricted. The strait, through which 20% of global oil supply passes, experienced slowed shipping activity following U.S.-Israeli attacks on Iran in late February.

The attacks on tankers, particularly the incident involving the Abu Dhabi National Oil Company's vessels in the Strait of Hormuz, have contributed to the price surge. Phil Flynn, a senior analyst for Price Futures Group, attributed the price increase to the tanker attacks. Additionally, the Ukrainian attack on the Black Sea port of Novorossiysk has further disrupted crude oil exports from Russia.

While Middle Eastern supplies are constrained, OPEC forecasts anticipate weaker demand growth and a significant increase in U.S. crude inventories, which should help lower oil prices. The International Energy Agency and U.S. Energy Information Administration's recent reports indicated that storage levels are better than expected, potentially leading to a drop in oil prices.