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Oil heads for 21% monthly gain as US-Iran tensions strain supply
West Texas Intermediate is holding near $84 a barrel after a week with more than an $8 trading range, while shipping through the Strait of Hormuz has picked up in recent days.
Oil prices steadied at the end of a volatile week, with West Texas Intermediate holding near $84 a barrel after swinging in a range of more than $8 this week, according to LiveMint Markets. The outlet said US crude is on track for the biggest monthly gain since March, with prices up about a fifth for the month.
Brent was last around $89 a barrel in the previous session, as supply concerns intensified with renewed strikes between the US and Iran. LiveMint Markets also noted that shipping through the Strait of Hormuz appears to have increased in recent days amid the escalation.
The report pointed to a broader regional risk picture, including discussions involving Saudi Arabia and representatives of 43 countries to protect navigation around the Red Sea. It said the Iran-backed Houthi blockade of Saudi shipping was imposed last week, and Houthi leader Abdulmalik al-Houthi said there were indications the Saudis were moving toward what he called comprehensive escalation.
Energy markets have risen sharply in July, the outlet said, with double-digit gains for both oil and products such as diesel. LiveMint Markets added that US stockpiles have continued to draw, and traders are also watching potential supply snarls in the Black Sea, where terminal loadings vital to Kazakhstan’s crude exports were halted again after fresh tanker attacks.
Latest closeWTI crude $84.21 ▼0.3%|Brent $89.45 ▼1.4%