Oil prices traded lower on Friday after Oman confirmed that operations at its key Mina Al Fahal export terminal were continuing without disruption, easing immediate supply concerns that had emerged following reports of an explosion near the facility.
As of 9:30 a.m., Brent crude was trading at $94.82 per barrel, down 0.22%, while U.S. West Texas Intermediate (WTI) crude stood at $92.50 per barrel, down 0.58%, according to market data monitored by Petroleumprice.ng.
The decline followed assurances from Petroleum Development Oman that activities at Mina Al Fahal, the country's primary crude export terminal, remained normal despite earlier reports suggesting that crude loading operations had been affected by an incident near the port's mooring infrastructure.
The clarification helped calm market fears over a potential disruption to crude exports from Oman, which ships between 800,000 and 900,000 barrels of oil per day through the terminal.
Despite Friday's losses, both benchmark contracts remain on course for their first weekly gain in three weeks, supported by persistent geopolitical risks across the Middle East and continued concerns over shipping movements through the Strait of Hormuz, a strategic waterway through which roughly one-fifth of global oil supplies pass.
Market sentiment continues to be shaped by developments surrounding regional conflicts and diplomatic negotiations involving Iran, Israel and Lebanon.
On Thursday, Hezbollah leader Naim Qassem rejected a U.S.-backed arrangement aimed at halting hostilities between Israel and Lebanon, adding another layer of uncertainty to an already fragile geopolitical environment. Iran has repeatedly linked broader regional de-escalation efforts to developments in Lebanon, keeping traders focused on political headlines for direction.
Meanwhile, U.S. President Donald Trump expressed optimism that progress was being made toward reducing tensions in the region, although no formal breakthrough has been announced.
Analysts say the market remains caught between competing forces. While the absence of disruption at Oman's export terminal has reduced immediate supply concerns, geopolitical tensions continue to provide underlying support to prices.
Beyond regional developments, traders are also monitoring global inventory levels. Several market observers have warned that declining crude stockpiles could tighten supply balances later in the year, potentially supporting higher prices during the third quarter.
Additional support for the market has come from the Organization of the Petroleum Exporting Countries (OPEC), which has maintained its forecast for global oil demand growth despite recent geopolitical disruptions. The group continues to project demand growth of about 1.2 million barrels per day in 2026.
At the same time, Iranian crude exports have reportedly fallen to their lowest level in six years, reflecting the impact of ongoing restrictions and weaker buying interest from key Asian consumers.
For now, oil prices remain highly sensitive to developments across the Middle East, with traders closely watching supply infrastructure, diplomatic negotiations and shipping activity through critical export routes for further market direction.