After climbing to $107 a barrel on Friday, crude oil prices settled down nearly 3% as word came that foreign ministers in the Middle East were trying to work out a temporary deal with Iran to manage shipping through the Strait of Hormuz. Prices still were on course for a weekly gain of more than 8%.
There were more exchanges between the US and Iran over the weekend. An Iranian cargo ship was hit early Sunday near Qeshm Island in the Strait of Hormuz, leaving one person dead and four others injured, according to Iranian state media. The incident occurred one day before Tehran was expected to brief neighboring countries on its efforts to regulate maritime traffic through the waterway.
Brent crude futures finished at $104.61 a barrel after a fall of $3.02 or 2.81%.
West Texas Intermediate crude closed down $2.43 or 2.37% at $100.05 a barrel on the New York Mercantile Exchange.
During the session both benchmarks hit their highest levels since the middle of May.
Adding to the worries about crude shipments out of the Middle East was the capture of the Red Sea port of Mocha on Thursday by Yemen’s Houthis. The port is the approach to the Bab al-Mandeb Strait which connects the Red Sea and the Suez Canal.
Saudi Arabia has shut down its East-West pipeline after the vital oil conduit came under aerial attack in the widening Middle East war.
The world’s largest crude oil exporter temporarily closed the pipeline after a drone attack that both Baghdad and Riyadh said had originated in Iraq, where Iranian-backed militias operate. Iraq dismissed a military commander on Saturday in response to the attack.
Natural gas closed down $0.003 or 0.11% at $2.831 MMbtu.
Friday saw a majority of Oklahoma energy stocks finish the day with losses. Stardust Power led all with a drop of nearly 16%.
Alliance Resource Partners LP