Oil closes higher, posts second straight weekly loss

Traders weighed geopolitical risks against expectations of weaker weekly performance for crude.

Oil prices rose on Friday, as markets awaited a potential agreement between Iran and Oman on regulating vessel traffic through the Strait of Hormuz. However, crude oil posted its second consecutive weekly loss amid hopes for easing geopolitical tensions.

The weekly decline was driven by growing hopes of reaching a resolution to the conflict between the United States and Iran. However, concerns that the diplomatic process could collapse resurfaced after the Iranian parliament began reviewing a bill that would ban vessels from countries Tehran considers hostile from transiting the Strait of Hormuz.

In another development that added pressure on global oil supplies, drone attacks in the Black Sea region reduced loading operations from the Caspian Pipeline Consortium by around 20% in July, affecting Kazakhstan’s exports and the sales of Western oil companies operating there.