Oil prices drop about 3% as US, Iran explore path out of war
USO•WTI crude fell 3% to $91.75 a barrel, while Brent rose 2.8% to $103.64, as US and Iranian negotiators explored a phased path out of war. Oil flows through the Strait of Hormuz reached 33.7 million barrels so far this week.
1. Prices diverge
Oil prices moved in opposite directions on Friday: WTI fell $2.86, or 3.0%, to $91.75 a barrel, while Brent rose $2.96, or 2.8%, to $103.64. For the week, WTI was down about 9% and Brent about 1%.
2. Talks and supply risks
US and Iranian negotiators are exploring a phased path out of war that would involve Tehran reopening the Strait of Hormuz and Washington lifting its economic blockade of Iran, sources close to the talks said. Meanwhile, Saudi, Turkish and Pakistani military chiefs are set to discuss support for Saudi Arabia as it faces Houthi attacks.
3. Hormuz oil flows
Crude flows through the Strait of Hormuz reached 33.7 million barrels in the week starting September 20, preliminary ship-tracking data showed, roughly on track with the previous week. The traffic included 19 tankers, 17 of them very large crude carriers; most carried Saudi crude, followed by Iraqi crude.
