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Oil set for weekly gain as Hormuz tensions flare again
Brent traded around $76.6 per barrel and WTI around $72.4, while analysts cited a near-standstill for Strait of Hormuz transits as a driver of risk premium.
Oil prices were headed for a weekly gain as tensions between the United States and Iran flared again, lifting crude benchmarks modestly after a four-week slide that had pushed prices to pre-war levels, OilPrice said.
At the time of writing, Brent crude was around $76.60 per barrel and West Texas Intermediate around $72.37 per barrel, with the move described as limited relative to the prior declines.
The relatively restrained rebound reflects, in part, a market view of ample supply, after reports that Persian Gulf exporters have been rushing to move barrels out of storage for delivery while discounting crude to speed up sales, OilPrice said.
Still, energy analyst Vandana Hari said pricing had backed off midweek highs but that a substantial risk premium remained because Strait of Hormuz transits are at a near-standstill without clear timing for a return to normal operations. ING commodity strategist Warren Patterson added that vessels transiting the strait were well below pre-war levels, and that confidence in U.S.-Iran diplomacy was capping upside even after U.S. actions and statements.
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Latest closeWTI crude $71.84 ▼2.3%|Brent $75.98 ▼2.6%