Crude Oil Prices Edge Higher, Brent Tops $92 Per Barrel
Crude oil prices edged higher on Thursday as ongoing uncertainty over the Strait of Hormuz and a sharp decline in US strategic petroleum reserves raised concerns about global oil supply.
Brent crude futures for October delivery traded at $92.45 per barrel, up 0.9% from the previous close of $ 91.62. US benchmark West Texas Intermediate (WTI) crude futures for September delivery traded at $ 85.12 per barrel, up 1% from $ 84.30.
Two supply risks are driving the markets: uncertainty over oil shipments through the Strait of Hormuz and the declining buffer in US emergency crude stocks.
The SPR has fallen to its lowest levels since 1982, leaving Washington with less oil available to respond to a major disruption just as tensions in the Middle East remain high.
US President Donald Trump said Wednesday that negotiations with Iran on a deal to cease hostilities could resume “maybe at some point,” while also reiterating his assertion that the US has “complete control” of the Strait of Hormuz, a claim Iran rejects, saying the waterway remains under its control.
Iranian Parliament Speaker Mohammad Bagher Qalibaf, meanwhile, said the Strait of Hormuz would not reopen until the US fulfills the conditions set out under a memorandum of understanding, including lifting the blockade and oil sanctions.
Trump also announced what he described as an unprecedented “economic operation” against Iran, threatening countries supporting Tehran with severe economic consequences.
Regional tensions were further heightened by the United Arab Emirates’ (UAE) denial of reports that Abu Dhabi was providing financial facilities to Iran.
On Wednesday, the UAE presidential diplomatic adviser Anwar Gargash described the claims as false and part of “desperate media campaigns.”
The denial came after the UAE announced Tuesday that it was suspending all trade, commercial exchanges and financial transactions with Iran until further notice amid escalating regional tensions.
The move followed the UAE Defense Ministry’s announcement that its air defenses had detected two ballistic missiles launched from Iran toward maritime traffic. The missiles landed in the sea without causing damage, while Iran denied any responsibility.
The developments added to concerns over a broader regional escalation and potential disruptions to energy supplies and shipping through the strait, supporting oil prices.
The UAE is Iran’s second-largest trading partner after China and its largest trading partner in the Gulf and Arab world, with annual non-oil trade recently ranging between $27 billion and $29.1 billion.
Meanwhile, prices also received support after the US Energy Information Administration (EIA) reported that the Strategic Petroleum Reserve (SPR) fell to its lowest level since 1982. EIA data showed that crude oil stocks in the SPR fell by 5.3 million barrels to 293.4 million barrels.
The latest EIA figure is in line with US Department of Energy (DOE) data released Monday, which showed the SPR at 293.4 million barrels as of Aug. 14, down from 298.7 million barrels a week earlier and marking its lowest level since 1982.
The continued drawdown in strategic reserves provided support to oil prices by fueling concerns over the US government’s ability to cushion the market against potential supply disruptions, particularly amid heightened geopolitical risks in the Middle East
Oil Jumps, Brent Tops $91 as US Rules Out Iran Truce Extension
