Oil prices fell on Friday after Oman confirmed that operations at its Mina al Fahal export terminal were continuing normally, easing market concerns over potential supply disruptions in the Gulf.
The decline followed reports of an explosion near the terminal’s mooring berths, which initially prompted fears that crude loading activities had been suspended. However, Petroleum Development Oman said the facility remained fully operational.
Brent crude futures dropped 0.9% to $94.19 per barrel, while U.S. West Texas Intermediate crude fell 1.2% to $91.91 per barrel by early afternoon trading.
Mina al Fahal, Oman’s main crude export terminal, ships between 800,000 and 900,000 barrels of oil per day, making it a critical supply hub for international markets.
Despite Friday’s losses, both benchmark contracts remained on track for their first weekly gains in three weeks, supported by heightened geopolitical tensions across the Middle East.
Oil markets have been closely monitoring developments in the region as negotiations aimed at ending the U.S.-Iran conflict continue to stall, while shipping activity through the Strait of Hormuz remains constrained.
Analysts said concerns over supply risks have supported prices, although gains have been limited by ample global inventories, rerouted crude exports and weaker demand growth.
Additional uncertainty emerged after Hezbollah rejected a U.S.-backed proposal intended to end hostilities between Israel and Lebanon, while Iran linked any broader agreement to a ceasefire in Lebanon.
Meanwhile, OPEC maintained its forecast for global oil demand growth of 1.2 million barrels per day this year despite ongoing regional instability and disruptions to maritime trade routes.
Separately, Iranian crude exports have fallen to their lowest level in six years due largely to a U.S. naval blockade, although subdued demand from China has also weighed on prices for the sanctioned oil.