Brent rises to $96.96 after two-month low — The National

Oil prices recovered on Thursday amid uncertainty over the US war with Iran. Brent crude rose by 2.47% to $96.96 per barrel, while US WTI crude gained 2.02% and traded at $89.90. The previous day, both grades had fallen to two-month lows, while Brent briefly reached $93 per barrel, The National reports.

Uncertainty over US policy

Weekly losses for Brent and WTI narrowed to about 14%. Investors are assessing the further development of the conflict with Iran after the Democratic Party gained control of the US House of Representatives and Senate. This increased uncertainty over President Donald Trump’s course regarding the war with Iran.

Ole Hansen, head of commodity strategy at Saxo Bank, said that without a peace agreement between Washington and Tehran, the market remains vulnerable to geopolitical risks. According to him, the recovery of Middle Eastern crude oil exports has not yet been accompanied by a similar improvement in the supply of petroleum products, maintaining the risk of new price fluctuations.

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Incident near the Strait of Hormuz

Iranian naval forces said that an oil tanker in an area east of the Strait of Hormuz struck a mine and caught fire. They also accused the vessel of violating the rules by operating in a dangerous area. Meanwhile, Saudi Arabia, according to the publication, continues to face missile attacks by Yemen’s Houthis.

Paul Donovan, chief economist at UBS Global Wealth Management, believes that oil may become cheaper after the end of hostilities. In his view, the fundamentally fair price could be around $80–85 per barrel.