NEW DELHI: Oil prices remained near recent highs and above $90 per barrel in early trade on Thursday as investors assessed uncertainty surrounding the US-Iran war and continued disruption to shipping through the Strait of Hormuz.
At around 7.30am IST, West Texas Intermediate (WTI) crude was trading at $84.66 a barrel, up 27 cents, or 0.32%, while Brent crude stood at $92, gaining 38 cents, or 0.41%.
Both benchmarks extended their gains on Wednesday, settling at their highest levels since July 24. Market sentiment remained supported by sporadic attacks in the Middle East, although the absence of a major escalation has limited fresh upward momentum, analysts said.
The UAE’s decision to suspend all financial and economic transactions with Iran until further notice has added to concerns over relations between the Gulf Arab oil producer and Tehran.
Hormuz disruption keeps oil markets on edge
The Strait of Hormuz remained a key focus for oil markets. US President Donald Trump said on Tuesday that no talks were taking place with Iran and that the waterway remained open. Iran, however, said the strait was still closed.
Shipping data released on Wednesday showed that traffic through the strategic waterway had slowed, with most shipowners avoiding the route amid uncertainty over when it could reopen following a blockade imposed during the Iran war.
The Strait of Hormuz is a crucial route for global oil shipments, making prolonged disruption a major risk for energy markets.
US inventory data adds to market uncertainty
US inventory data provided another factor for traders to assess.
According to Reuters, the Energy Information Administration said crude and gasoline inventories increased last week, while distillate stockpiles declined.
US crude inventories rose by 4.4 million barrels in the week ended August 14, sharply exceeding expectations for a 600,000-barrel draw.
The unexpected build in crude inventories could weigh on prices, although concerns over supply disruptions linked to the conflict and the Strait of Hormuz continued to provide support.
