The conflict with Iran and potential reconciliation stall, supply concerns drive oil prices higher
Oil prices rose on Thursday amid concerns that the stalemate in the conflict with Iran will continue to disrupt supply from a key Middle East production region and tighten global supply.
October Brent crude futures rose 35 cents, or 0.38%, to $91.97 a barrel as of 06:32 GMT, while September WTI crude futures rose 17 cents to $86.00 a barrel. The more active October WTI contract rose 38 cents, or 0.45%, to $84.77.
Both Brent and WTI oil prices rose for a fifth consecutive session on Thursday after closing at their highest levels since July 24 on Wednesday. The September WTI contract expires on Thursday.
Oil prices, supported by infrequent attacks in the Middle East, remained at high levels but failed to gain momentum for a major climb.
Given the uncertainty surrounding peace talks and tensions between the United Arab Emirates, the US, Oman, and Iran, the market is likely to maintain a gradual upward trend.
The United Arab Emirates suspended its financial ties with Iran until further notice, bringing renewed tensions between the UAE, a major Gulf oil producer, and Iran.
On Tuesday, Trump stated that no talks were taking place with Iran and that the Strait of Hormuz remained open. However, Iran indicated that the waterway remained closed.
According to recent maritime data, ship traffic through the Strait of Hormuz on Wednesday was unchanged compared to the previous day, as talks to end the war between the US and Iran stalled.
Before the war began on February 28, shipments amounting to roughly one-fifth of global consumption passed through this waterway, but current flows are well below pre-war levels.
The war also impacted refined fuel supplies, reducing inventories as less crude oil reached refineries.
U.S. distillate fuel inventories, including diesel and heating oil, fell for the third consecutive week last week, according to the Energy Information Administration (EIA) on Wednesday. However, crude oil inventories rose by 4.4 million barrels in the week ending August 14, compared to an expected decrease of 600,000 barrels.
Related Articles
Oil prices continued to rise amid ongoing uncertainty in the Strait of Hormuz
Oil prices fell on Friday but are poised for a second weekly gain
Iran vows 'devastating' response to U.S. threat yet
