(RTTNews) – Oil prices fell back near levels last seen in late February on Friday amid easing supply concerns.
Brent crude prices fell nearly 4 percent toward $72 a barrel, reversing the previous session’s gains after a Singapore-flagged cargo ship came under attack while transiting the Strait of Hormuz. WTI crude futures were down 3.8 percent at $69.20.
A cargo vessel was attacked off Oman, raising fresh security concerns and threatening maritime trade. The incident raised concerns that Iran is seeking to exert greater control over traffic in the Strait of Hormuz.
The International Maritime Organization (IMO) said its evacuation plan will be paused until safety assurances could be secured for both the ships involved in the evacuation and commercial vessels operating in the region.
Iran’s Islamic Revolutionary Guard Corps warned ships against using any Hormuz route not approved by Iran, calling alternative passages ‘highly dangerous and prohibited’.
Meanwhile, Iraq denied reports suggesting that the country was weighing withdrawal from OPEC due to disagreements over production limits.
Iraq’s Ministry of Oil later stated that Baghdad remains committed to seeking changes to its production quota.
Washinton and Tehran are working to strike a permanent agreement to end the conflict within 60 days, though talks on key issues such as nuclear policy remain unresolved.
Middle Eastern producers are ramping up output despite difficulties securing enough tankers to transport the additional crude.
According to shipping data from LSEG, Saudi Aramco has resumed crude loadings at its Ras Tanura terminal in the Gulf after a near four-month halt.
Oil exports from the UAE in early June recovered to reach nearly 85 percent of prewar levels, as the country used alternative shipping routes and pipelines, the International Energy Agency said earlier this week.
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