Oil prices fell on Friday following remarks by US President Donald Trump that the Strait of Hormuz remained open and tankers continued to transport crude, which boosted expectations of increased global supply. International benchmark Brent crude futures for November delivery traded at $87.94 per barrel at 09:49 a.m. local time (0649 GMT), down 0.7% from the previous close of $88.52. US benchmark West Texas Intermediate (WTI) crude futures for October delivery traded at $82.79 per barrel, declining 0.9% from $83.53.
Brent crude futures had risen nearly 2% on Thursday after reports emerged that Venezuela was considering withdrawing from the Organization of the Petroleum Exporting Countries (OPEC), which raised concerns about the impact on production coordination within the group. International media reported that Venezuela's potential exit had also been discussed with US officials, although no final decision had been reached. Such a withdrawal could further diminish OPEC's influence over global crude markets and introduce additional uncertainty into oil pricing.
The discussions occur as Washington has been strengthening ties with Caracas and negotiating long-term access to Venezuela's oil reserves. According to International Energy Agency data, Venezuela produced approximately 1.12 million barrels per day of crude in July. Trump's comments regarding the Strait of Hormuz being open and under US control exerted downward pressure on oil prices.
He indicated that 24 tankers had passed through the waterway overnight and that tanker traffic was continuing. These remarks alleviated concerns that disruptions to traffic could further strain global supplies, although this easing was partly counterbalanced by strong rhetoric from Iran. Iran's Supreme National Security Council Secretary Mohsen Rezaei stated on Thursday that Tehran would target US military and economic interests if Washington continued its naval blockade.
He cautioned that any action against Iran would be met with a "historic" blow. Rezaei further asserted that the Strait of Hormuz would only be reopened after the United States took practical steps to satisfy Iran's demands. Oil prices also faced pressure from expectations that the US Federal Reserve may maintain tighter monetary policy for an extended period.
The personal consumption expenditures (PCE) price index rose 0.2% month-on-month in July, surpassing market expectations and fueling concerns that inflationary pressures remain entrenched. Markets were pricing in a 66% probability that the Federal Reserve would leave rates unchanged at its next meeting and a 62% probability of a 25-basis-point rate hike in October. Higher interest rates can decelerate economic activity and crude demand, while a stronger dollar makes dollar-denominated crude more expensive for purchasers using other currencies.
Source: Anadolu Agency (aa.com.tr), 28 August 2026
Source: aa.com.tr