Oil drops over $1 a barrel, set for monthly gain of around 20%

BAGHDAD, Iraq — Crude oil prices fell by more than a dollar on Friday, but benchmarks were heading toward a roughly 20% monthly gain as the year drew to a close. Brent futures slipped 1.2% to $88 a barrel, while U.S. West Texas Intermediate crude dropped 1.8% to $82.09. ANZ analyst Daniel Hynes said data pointing to higher oil flows through the Strait of Hormuz had partially offset the impact of rising tensions in the Middle East. Saudi Arabia is seeking to lead a coalition to strengthen maritime defense cooperation in the Bab el-Mandeb Strait, the Red Sea and the Gulf of Aden. The Saudi Defense Ministry said 14 countries, including Djibouti, Egypt, Pakistan, Sudan and Turkey, had expressed support for the multinational maritime defense coalition. The Iran-aligned Houthis announced last week that they were imposing a maritime blockade on Saudi Arabia, threatening Saudi oil export routes through the Red Sea.