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Oil rises to highest in nearly three weeks on UAE-Iran tensions
Brent hovered near $92 a barrel as US refinery runs hit their highest since September 2019, supporting crude demand even as US crude stockpiles rose 4.4 million barrels.
Oil prices rose to the highest in nearly three weeks as tensions between the United Arab Emirates and Iran flared and traders increasingly priced in a longer disruption risk, according to LiveMint Markets.
Brent futures traded near $92 a barrel after the UAE said it was cutting all economic ties with Tehran following an accusation that Iran fired ballistic missiles at its territory. Fresh US data also pointed to stronger demand, with refinery runs rising to the highest since September 2019, led by the Gulf Coast.
US crude stockpiles increased by 4.4 million barrels last week, but distillate inventories fell by 1.5 million barrels to the lowest in more than a month, helping lift refined-product prices. Diesel has rallied more than crude amid supply tightness tied to the Russia-Ukraine war and attacks on refineries.
The report also cited continued shipping risk in the Strait of Hormuz, where three supertankers linked to China reportedly changed course, and the UK said a vessel leaving the strait was hit by a projectile with one casualty. It noted that Persian Gulf producers continued covertly shuttling oil through Hormuz, helping contain prices after a 60-day US-Iran ceasefire expired.
Latest closeWTI crude $82.40 ▲1.4%|Brent $88.59 ▲1.8%