Oil Prices Out of Control Again

Global oil rates rose on Wednesday, with Brent crude climbing to $106.37 per barrel and West Texas Intermediate (WTI) reaching $94.72.

Key points

• Earlier, Israeli media documented that Netanyahu had pressed Trump last week to restart attacks before the US midterm elections in November.
• ING commodity analysts viewed Saudi Arabia's plan to expand the capacity of its East-West pipeline as a factor that could put downward pressure on rates.
• Iranian authorities informed Reuters that the country's forces planned to expand strikes in Hormuz using new tactics.
• Iran has cautioned the United States that it is prepared to respond preemptively to any perceived threat of renewed strikes against its territory.
• Uncertainty remains over how much extra oil could reach global markets, given the risks facing tanker shipments.

Earlier, Israeli media documented that Netanyahu had pressed Trump last week to restart attacks before the US midterm elections in November. Trump had reportedly informed Netanyahu to prepare but produced no firm commitment to resume hostilities. Pakistan Receives First LNG Cargo in October.

Phillip Nova analyst Priyanka Sachdeva remarked Iran's latest statements suggested it could apply its strategic position in the Strait of Hormuz to keep oil rates elevated and exert pressure on the global economy.

Meanwhile, ING commodity analysts viewed Saudi Arabia's plan to expand the capacity of its East-West pipeline as a factor that could put downward pressure on rates. The expansion could add 1.2 million barrels per day of capacity within months.

Uncertainty remains over how much extra oil could reach global markets, given the risks facing tanker shipments. Stay Connected with ProPakistani.

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Taken together, the developments around oil Prices Out of Control Again point to a situation that is still moving, and the coming days should bring more clarity.