Global oil prices weakened again during Friday morning trading\n(31\/7\/2026), extending a correction following a sharp surge driven by\nescalating conflict in the Middle East. Market participants are\ncurrently weighing the possibility of reduced disruptions to shipping\nroutes following a proposal to form a maritime defence coalition led by\nSaudi Arabia.<\/p>\n
According to Refinitiv data as of 09:20 WIB, Brent crude stood at\nUS$88 per barrel, down 1.16% from Thursday\u2019s close of US$89.03 per\nbarrel. West Texas Intermediate (WTI) was at US$81.84 per barrel, a\n2.09% decline from its previous close of US$83.59 per barrel.<\/p>\n
This correction extends the decline seen the previous day. On\nThursday\u2019s close (30\/7), Brent fell 1.88% to US$89.03 per barrel, while\nWTI corrected 1.03% to US$83.59 per barrel. Nevertheless, oil prices\nremain well above levels seen at the start of last week. Brent is still\napproximately 9.9% higher than the July 21 close of US$91.01 per barrel,\nwhile WTI has strengthened by about 8.2% from US$84.91 per barrel.<\/p>\n
Downward pressure on prices emerged after Saudi Arabia proposed the\nformation of a multinational maritime defence coalition to bolster\nsecurity in the Bab el-Mandeb Strait, the Red Sea, and the Gulf of Aden.\nThe Saudi Ministry of Defence stated that 14 nations, including Turkey,\nPakistan, Egypt, Sudan, and Djibouti, have expressed support for the\ninitiative.<\/p>\n
The market views this move as having the potential to reduce the risk\nof oil distribution disruptions in the Red Sea. Last week, the\nIran-backed Houthi group announced a maritime blockade against Saudi\nArabia, threatening oil export routes through the Red Sea, which serves\nas a vital alternative when traffic through the Strait of Hormuz is\ndisrupted.<\/p>\n
Further sentiment stems from negotiations between Iran and Oman\nregarding the management of the Strait of Hormuz. Although a senior\nIranian official stated the previous day that Oman\u2019s proposal for joint\nmanagement was rejected, the continuation of dialogue is still viewed by\nthe market as an opportunity to reopen shipping lanes more safely. The\nStrait of Hormuz handles approximately one-fifth of global oil and\nliquefied natural gas trade, meaning any diplomatic developments\ndirectly impact energy price movements.<\/p>\n
On the other hand, geopolitical risk premiums have not vanished. The\nUnited States confirmed it had struck dozens of targets belonging to\nIran\u2019s Islamic Revolutionary Guard Corps (IRGC) in retaliation for\nTehran\u2019s ballistic missile launch against US bases in the Middle East.\nWashington also denied Iranian claims that six US fighter jets were\ndestroyed during the attack.<\/p>\n
Conflict is also disrupting energy infrastructure in several regions.\nDrone attacks triggered fires on two gas tankers at the Port of\nDamietta, Egypt. The Egyptian government has ensured that its energy\nneeds can still be met through alternative supplies. Simultaneously, the\nHouthis reportedly launched attacks against oil facilities in the\nEastern Province of Saudi Arabia from Iraqi territory, alongside Iraqi\narmed groups.<\/p>\n
Supply disruptions are also occurring in the Black Sea region.\nSeveral tankers scheduled to load oil at the Caspian Pipeline Consortium\n(CPC) terminal cancelled loading processes after a vessel was hit by an\nattack while berthed. In Russia, Ukrainian drone strikes triggered a\nfire at Lukoil\u2019s Perm refinery, forcing one crude oil distillation unit\nto halt operations.<\/p>\n
Despite ongoing supply disruptions, market participants are beginning\nto see opportunities for additional supply if security in shipping lanes\nimproves. This prospect is limiting the upward momentum of oil, which\nhad previously seen Brent touch US$93.31 per barrel and WTI reach\nUS$85.94 per barrel during Thursday\u2019s trading before ultimately closing\nlower.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/oil-prices-fall-again-as-markets-process-saudi-maritime-coalition-plans-1785473661", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }