Crude Oil Prices Rebound, Brent Tops $98
Crude oil prices edged higher on Thursday as improving flows through the Strait of Hormuz eased supply concerns, while uncertainty over potential US sanctions on Iran continued to support prices.
International benchmark Brent crude futures for December delivery increased 0.3% to $98.32 per barrel, up from $98.03 at the previous close. US benchmark West Texas Intermediate (WTI) crude futures for November delivery rose 0.1% to $90.53 per barrel from $90.42.
US President Donald Trump said Wednesday that large volumes of oil were currently passing through the Strait of Hormuz, easing concerns over a prolonged disruption in one of the world’s key oil transit routes.
Trump also said oil prices would begin to decline, pointing to increased flows through the strait. The comments came after recent diplomatic efforts to end the conflict and restore energy flows from the region helped ease the risk premium in oil markets.
US Energy Secretary Chris Wright also pointed to record production levels at US refineries, saying announcements were expected on additional diesel supplies coming to the market from Europe.
Wright said the additional supply could put downward pressure on diesel prices.
The developments have contributed to easing concerns over fuel supply. Meanwhile, uncertainty over the scope and timing of potential US sanctions on Iran continued to support prices.
The US Treasury added 10 individuals and companies from various countries to its sanctions list on Tuesday over alleged ties to the Iranian military.
Market participants are closely monitoring developments around the sanctions and their potential impact on Iranian crude exports, which could affect global supply balances.
Geopolitical risks surrounding the Strait of Hormuz and uncertainty over Iranian crude exports continue to keep a risk premium in oil markets. Oil Prices Ease as Gulf Exports Rebound, Ceasefire Uncertain
