Oil prices rose on Thursday as investors weighed the uncertain outcome of negotiations between Iran and Oman over shipping through the Strait of Hormuz, while reported attacks on Saudi oil tankers by Yemen’s Houthi rebels heightened concerns over global energy supplies.
Brent crude futures climbed 83 cents, or 1.04%, to $80.28 per barrel by 1158 GMT, while US West Texas Intermediate (WTI) crude gained 61 cents, or 0.81%, to $75.83 per barrel.
Market participants remained cautious following reports that Iran and Oman had reached an understanding on the geographic coordinates for a shipping route through the Strait of Hormuz, with a joint announcement expected once finalised.
Iran’s Foreign Ministry spokesperson, Esmaeil Baghaei, said on Wednesday that the agreement would proceed provided there was no interference from third parties.
The proposed arrangement, according to a senior Iranian source and two regional officials, would grant Tehran greater control over vessels entering the Gulf through the Strait of Hormuz as part of efforts to ease tensions with the United States.
The strategic waterway handled about one-fifth of global daily oil and liquefied natural gas shipments before the latest conflict erupted in late February, making any disruption a major concern for energy markets.
Tim Waterer, Chief Market Analyst at KCM Trade, said investors remained wary of the durability of any agreement.
“Traders still remember the short-lived Memorandum of Understanding signed in June, so there is understandable anxiety that any new deal could prove equally fragile,” he said.
Waterer added that the market would continue to price in supply risks until there were sustained and verifiable increases in oil exports.
Shipping data showed that crude oil and condensate exports from Gulf countries remained largely stable in July but were still around 40% below pre-war levels.
Concerns over supply were further fuelled after Yemen’s Iran-backed Houthi movement claimed responsibility for missile attacks on two Saudi oil tankers—one near the Red Sea port of Yanbu and another in the Gulf of Aden. Saudi Arabia has not confirmed the reported attacks.
Roberto Cominotto, an equity research analyst at Julius Baer, said the attacks had not yet caused significant disruptions to oil and gas supplies but warned the situation could change if hostilities intensified.
Meanwhile, Saudi Arabia slightly reduced the official selling price of its flagship Arab Light crude for Asian buyers in September, according to a pricing document reviewed by Reuters.
In Russia, authorities said emergency services were battling a fire at a major oil refinery in the Yaroslavl region following what regional Governor Mikhail Evrayev described as a large-scale Ukrainian drone attack.
Boluwatife Enome
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