Strait of Hormuz Shipping Risks Push Oil Prices Up From Two-Month Lows
Brent climbed 1.1% as traders weighed de-escalation hopes against fresh tanker attacks, with 37 vessels hit in October, the Washington Institute for Near East Policy said.
- Brent and WTI crude prices rose from two-month lows on Wednesday, reflecting market volatility between hopes for United States-Iran de-escalation and concerns over Strait of Hormuz shipping attacks.
- The Washington Institute for Near East Policy reports 37 vessels were attacked in the Strait of Hormuz last month, the highest monthly total since the Middle East war began.
- Sparta Commodities analyst June Goh noted "an increase of vessel attacks in the Gulf shipping lanes amidst uncertainty of the diplomacy talks," citing Iran's willingness to meet United States demands as the top oil price driver.
- Even if a deal is struck, increased waterway flows depend on mine clearance, insurance costs, and whether shipowners are willing to take risks, LSEG Oil Research notes.
- American Petroleum Institute data shows crude stocks rose 9 million barrels for the week ending November 6, while OPEC production returned to 90% of pre-war levels as investors price out geopolitical risk premiums.
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Oil up 1% after Iran says no nuclear material will leave the country
Oil prices rise, after two days of decline, in the midst of the uncertainties surrounding the conflict between the United States and Iran and the lack of concrete progress in the negotiations for the permanent reopening of the Strait of Ormuz. Brent, a world reference, fell below $90 per barrel on the eve, for the first time since August, after US President Donald Trump said that further attacks on Iran would not be necessary. At around 8:40 a.m…
Oil prices rose about 1% after falling to a two-month low in the previous session. The market reacted to the ongoing attacks on ships in the Strait of Hormuz and to new signals that a diplomatic agreement between Iran and the United States is not close. Brent crude futures rose by $1.28, or 1.4%, to $92.77 a barrel. U.S. light crude WTI added 76 cents, or 0.9%, to $86.80 a barrel. The new tensions were triggered by a statement by Iran’s security…
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