Oil prices steady as investors assess US-Iran war outlook
Oil rates steady as investors assess US-Iran war outlook.
Oil rates steady as investors assess US-Iran war outlook.
Article outline
- What happened
- The key numbers
- Official response
- The details
- A closer look
- The bottom line
Key points
- While US West Texas Intermediate crude futures for September slipped 2 cents to $85.81 a barrel, brent crude futures for October delivery rose 25 cents, or 0.3%, to $91.87 a barrel by 0037 GMT.
- Crude inventories rose by 4.4 million barrels in the week concluded on August 14, compared with estimates for a 600, 000-barrel draw.
- Brent crude futures for October delivery rose 25 cents, or 0.3%, to $91.87 a barrel.
- On Tuesday, US President Donald Trump remarked no negotiations were taking place with Iran and that the Strait of Hormuz was open.
- Oil rates steadied as Middle East tensions, particularly concerning the US-Iran situation and Strait of Hormuz shipping security, continue to influence market dynamics.
Oil rates steadied as Middle East tensions, particularly concerning the US-Iran situation and Strait of Hormuz shipping security, continue to influence market dynamics. Impact of US-Iran tensions on oil rates. Shipping security in the Strait of Hormuz. UAE's suspension of transactions with Iran. Add BRecorder as a trusted source on Google.
TOKYO: Oil rates steadied in early trade on Thursday as investors assessed the outlook for the US-Iran war and the security of shipping through the Strait of Hormuz.
While US West Texas Intermediate crude futures for September slipped 2 cents to $85.81 a barrel, brent crude futures for October delivery rose 25 cents, or 0.3%, to $91.87 a barrel by 0037 GMT. The more active October WTI contract gained 14 cents, or 0.2%, to $84.53.
Both Brent and WTI benchmarks gained for a fourth straight session on Wednesday, settling at their highest since July 24. The September WTI contract expires afterwards on Thursday. Houthis say they don't seek to close key Bab al-Mandeb Strait.
"Oil prices remained elevated as the market is supported by sporadic attacks in the Middle East but lacks fresh momentum without a major escalation, " remarked Hiroyuki Kikukawa, chief strategist of Nissan Securities Investment, a unit of Nissan Securities.
"The market is likely to maintain a gradual upward trend given uncertainty over peace talks and tensions involving the United Arab Emirates, Oman and Iran, " he continued.
In practice, the UAE's decision to suspend all financial and economic transactions with Iran until further notice has refocused the spotlight on fraught ties between the major Gulf Arab oil producer and Iran.
On Tuesday, US President Donald Trump remarked no negotiations were taking place with Iran and that the Strait of Hormuz was open. Iran, nevertheless, stated the waterway remained shut.
As most shipowners avoided the key waterway as of a lack of clear signalling on its reopening from a blockade put in place during the Iran war, shipping through the Strait of Hormuz slowed, data indicated on Wednesday.
In the U.S., crude and gasoline inventories rose and distillate stockpiles fell last week, the Energy Information Administration remarked on Wednesday.
Crude inventories rose by 4.4 million barrels in the week concluded on August 14, compared with estimates for a 600, 000-barrel draw. Oil climbs on tanker attacks, US-Iran claims regarding Hormuz control.
Oil rises on Iran war stalemate; near-term potential for further gains seen limited. Oil rises as US-Iran peace hopes fade.
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Taken together, the developments around oil prices steady as investors assess US point to a situation that is still moving, and the coming days should bring more clarity.
