Oil slips as traders watch Strait of Hormuz reopening talks
Oil prices slipped this Friday as traders watched negotiations over the Strait of Hormuz, a key route that investors were seeing signs that Gulf states and Iran were nearing a temporary agreement to reopen.
This strait used to carry about 20% of the world's oil and gas shipments.
Brent crude dropped to $81.74 per barrel, and US West Texas Intermediate fell to $76.63, despite oil futures closing more than $3 a barrel higher on Thursday when Iran began considering legislation that would bar US and Israeli vessels from the Strait of Hormuz.
US sanctions complicate Hormuz payments
The proposed arrangement would be difficult to implement because US sanctions and restrictive insurance terms could complicate payments.
Saudi Arabia has warned about possible attacks from Iranian-backed groups, while Yemen's Houthis said they carried out missile and drone attacks on Saudi deployments in Yemen's Marib and Hadramout regions on Thursday, keeping markets shaky.
Despite Thursday's rebound, oil prices are set for a 9% weekly loss.
Meanwhile, investors are waiting for US payroll numbers; strong job growth could influence Federal Reserve decisions and affect oil demand going forward.