Oil prices are ticking up, as Iran hardens its stance over control of the Strait of Hormuz and other demands to end the war, dashing hopes for a quick deal to reopen the waterway.
Brent crude, the global oil benchmark, rose around 1% before paring gains to trade 0.2% higher at $89.12 a barrel. West Texas Intermediate, the US benchmark, climbed by a similar margin to $83.43 a barrel. Brent is now on track for a sixth consecutive daily increase.
Oil prices have been volatile amid mixed messages about a potential US-Iran deal. Prices moved lower yesterday after Pakistan’s defence minister said the countries were close to an arrangement, only to rebound following more hawkish comments from Iran over the strait’s closure.
The International Energy Agency said Wednesday that benchmark crude prices traded in an “unusually wide range” of almost $40 a barrel in July, “driven by sudden diplomatic pivots on the conflict.”
Meanwhile, shipping traffic through Hormuz has slowed, with just 16 vessels transiting the strait over the course of Monday and Tuesday, Kpler data showed. That’s down from about 130-140 daily transits before the war.
Investors are also pricing in a more protracted disruption, with longer-dated Brent futures moving higher, including on deliveries as much as a year from now.
-CNN
Brent crude, the global oil benchmark, rose around 1% before paring gains to trade 0.2% higher at $89.12 a barrel. West Texas Intermediate, the US benchmark, climbed by a similar margin to $83.43 a barrel. Brent is now on track for a sixth consecutive daily increase.
Oil prices have been volatile amid mixed messages about a potential US-Iran deal. Prices moved lower yesterday after Pakistan’s defence minister said the countries were close to an arrangement, only to rebound following more hawkish comments from Iran over the strait’s closure.
The International Energy Agency said Wednesday that benchmark crude prices traded in an “unusually wide range” of almost $40 a barrel in July, “driven by sudden diplomatic pivots on the conflict.”
Meanwhile, shipping traffic through Hormuz has slowed, with just 16 vessels transiting the strait over the course of Monday and Tuesday, Kpler data showed. That’s down from about 130-140 daily transits before the war.
Investors are also pricing in a more protracted disruption, with longer-dated Brent futures moving higher, including on deliveries as much as a year from now.
-CNN
