On Friday, March 20, oil prices declined as leading European countries and Japan proposed to join forces to unblock the passage of ships through the Strait of Hormuz, and the United States unveiled plans to increase oil supply.
It was reported by Ekonomichna Pravda with reference to Reuters.
The report says that futures for Brent crude oil fell by USD 1.36 (1.3%) to USD 107.29 per barrel, and US West Texas Intermediate (WTI) crude oil fell by USD 1.92 (2.0%) to USD 94.22.
But over the week, the benchmark Brent crude oil rose by almost 4% after Iran struck at oil and gas facilities in the Persian Gulf, forcing them to suspend production.
In contrast, WTI was expected to fall by more than 4%.
According to Priyanka Sachdev, senior market analyst at Phillip Nova, both benchmarks lost some of their "war premiums" on Friday morning after world leaders began to recognize the need for restraint and de-escalation of the conflict in the Middle East.
Sachdev noted that markets will remain sensitive to the situation in the Strait of Hormuz, which is critical to oil supplies.
"The damage has already been done, and even if safe passage for tankers is somehow ensured through the Strait of Hormuz, it could take a very long time to fully restore logistics," Sachdev said.
She added that until then, any direct attack on export infrastructure or tanker routes could cause prices to rise sharply, while ongoing diplomatic efforts could "contain the price increase and accelerate the disappearance of the 'war premium'".
In a joint statement on March 19, the United Kingdom, France, Germany, Italy, the Netherlands and Japan expressed "readiness to join the necessary efforts to ensure safe passage through the strait," which carries 20% of the world's oil.
As the Ukrainian News agency earlier reported, oil prices on Thursday, March 19, rose after Iran attacked energy supplies, iran attacked energy facilities across the Middle East, including the world's largest liquefied natural gas plant in Qatar, Ras Laffan.
US Treasury Secretary Scott Bessent stated on Thursday, March 19 that the United States is considering lifting sanctions on Iranian oil stuck on tankers.
Washington believes that this could help reduce prices on the global oil market.
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