Oil prices rise as Hormuz uncertainty continues
- Brent crude and U.S. West Texas Intermediate crude prices rose for a fourth consecutive session as traders monitored uncertainty around the Strait of Hormuz.
- Brent crude futures increased 0.5% to $91.44 a barrel, while WTI futures rose 0.6% to $85.45.
- Market participants are watching U.S.-Iran statements, shipping activity and upcoming U.S. inventory data for direction.
Oil prices moved higher for a fourth straight day on Wednesday as investors assessed conflicting statements from the United States and Iran over shipping conditions in the Strait of Hormuz.
Brent crude futures rose 42 cents, or 0.5%, to $91.44 a barrel, while West Texas Intermediate crude futures gained 51 cents, or 0.6%, to $85.45, after both benchmarks closed Tuesday at their highest levels in more than three weeks.
“The shipping risks are increasing again as attacks from Iran and Houthis remain prevalent in both key chokepoints, keeping oil prices supported in the near term,” said June Goh, senior oil market analyst at Sparta Commodities.
Shipping activity through Hormuz slowed as some vessel operators avoided the waterway, while Iraq approved alternative export mechanisms through multiple outlets to reduce reliance on the route.
Following the latest oil market developments, Brent crude futures were trading at $91.44 a barrel and WTI crude futures at $85.45 a barrel.
Traders are also monitoring U.S. crude and fuel inventory data, with the American Petroleum Institute reporting a decline in crude and distillate stocks and an increase in gasoline inventories.
The U.S. Energy Information Administration is scheduled to release official inventory figures, with analysts expecting U.S. crude stocks to have fallen by about 600,000 barrels for the week ended August 14.
Oil markets have remained focused on geopolitical risks around major shipping routes, while producers including Iraq are seeking alternative export options to maintain crude flows.
