Crude oil traded above $83 per barrel on Friday, holding onto gains from the previous session as an escalation in the Russia-Ukraine conflict shifted market focus from the Middle East to Eastern Europe. Russian President Vladimir Putin reportedly stated that negotiations with Ukraine had produced no results and that Russia was preparing to intensify its military campaign. At the same time, continued Ukrainian attacks on Russian refineries and ports are disrupting the country’s energy infrastructure and could limit its capacity to export both crude oil and refined products.
Despite these developments, oil prices remain on track to end the week lower, as markets assess signs of diplomatic progress in the Middle East and an improving outlook for supply flows through the Strait of Hormuz. Iran’s military announced that it had reached a revenue-sharing agreement with Oman concerning the strategic waterway, though Tehran emphasized that the deal does not ensure an immediate reopening of the strait.
