Oil prices rise on Saudi supply concerns despite weekly drop

Oil prices edged higher on Friday as persistent concerns over supply disruptions in the Middle East countered the downward pressure from a tentative ceasefire. Brent Crude Oil futures increased by 40 cents to reach $96.32 a barrel, while West Texas Oil rose by 84 cents to $98.71. Despite the daily gains, both benchmarks remain on track for their most significant weekly loss since last June, having dropped approximately 12% following a two-week ceasefire agreement between Iran and the United States that was brokered by Pakistan.

Market analysts noted that while the ceasefire has provided some relief to futures markets, the physical market continues to face acute scarcity. The Strait of Hormuz, a vital artery for global energy transit, remains heavily restricted with traffic volumes currently estimated at less than 10% of normal levels. Tehran has maintained control over the passage, warning vessels to stay within its territorial waters.