Oil prices were broadly steady in early trading on Thursday as investors assessed the outlook for the war between the United States and Iran and the security of navigation through the Strait of Hormuz.
By 0037 GMT, Brent crude futures for October delivery had risen 25 cents, or 0.3%, to $91.87 a barrel, while US West Texas Intermediate (WTI) crude futures for September delivery fell 2 cents to $85.81 a barrel. The more actively traded October US crude contract rose 14 cents, or 0.2%, to $84.53 a barrel.
Both benchmark crude contracts rose for a fourth consecutive session on Wednesday, reaching their highest settlement levels since July 24. The September US crude contract expires later on Thursday.
“Oil prices have remained elevated as the market is supported by sporadic attacks in the Middle East, but they lack fresh momentum as there has been no major escalation,” said Hiroyuki Kikukawa, chief analyst at Nissan Securities Investment.
He added that “the market is likely to maintain a gradual upward trend amid uncertainty over talks to end the war and disruptions involving the UAE, Oman and Iran.”
The UAE’s decision to suspend all financial and economic transactions with Iran until further notice has once again highlighted the strained relations between the two countries.
US President Donald Trump said on Tuesday that there were no talks with Iran and that the Strait of Hormuz was open. Iran, however, said the waterway remained closed.
Data released on Wednesday showed a slowdown in shipping traffic through the Strait of Hormuz, as most shipowners avoided the waterway due to uncertainty over navigation conditions following its closure amid the war with Iran.
The US Energy Information Administration said on Wednesday that crude oil and gasoline inventories rose, while distillate stocks fell last week. Crude inventories increased by 4.4 million barrels in the week ended August 14, compared with analysts’ expectations for a 600,000-barrel decline.
Reuters
