Oil prices fell by more than $1 due to increased oil flows
Oil prices dropped on Friday, but remained on track for a monthly increase despite increased supply flows through key sea transit points along with the lack of progress in talks between the US and Iran.
Brent futures fell $1.03, or 1.2%, to $88 a barrel as of 02:15 GMT, while WTI fell $1.50, or 1.8%, to $82.09 a barrel.
On a monthly basis, both indicators are on track for roughly a 20% increase.
Crude oil edged lower as rising tensions in the Middle East were offset by signs of increased commodity flows through the Strait of Hormuz and Redsea.
Last week, Iranian-backed Houthi militants in Yemen imposed a naval blockade on Saudi Arabia, threatening the Red Sea route, an alternative to the Strait of Hormuz for oil exports.
Saudi Arabia aims to lead a coalition to increase defense cooperation in the Bab el-Mandeb Strait, the Red Sea, and the Gulf of Aden, all critical to its energy supply.
The Saudi Defense Ministry said it supports a multinational maritime defense coalition of 14 countries, including Djibouti, Egypt, Pakistan, Sudan, and Turkey.
While tanker traffic continues through the Strait of Hormuz and the Red Sea, increased security risks have added a significant geopolitical risk premium to oil prices by raising freight costs and insurance premiums.
Although prices have retreated from recent highs, the overall trend remains constructive.
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