Brent oil nears $96 amid tensions over Iran — OilPrice
Oil prices continued to rise and could increase significantly over the week amid the conflict in the Middle East. At the time of publication, a barrel of Brent was trading at $95.55, while U.S. West Texas Intermediate was at $91.53, OilPrice reports.
Impact of the conflict on the market
According to the publication, Iran and the United States exchanged missile strikes this week. Israel’s defense minister also threatened to deliver a devastating strike against Iran’s military and civilian infrastructure, including energy facilities.
ANZ analysts said in commentary cited by Reuters that the market has entered a delicate phase of adjustment. In their assessment, substantial inventories helped mitigate the initial supply crisis, but maintaining market balance will become more difficult as these reserves decline.
Supplies through the Strait of Hormuz
The ING team noted that the escalation is supporting crude oil prices, but the increase may lose momentum if shipments through the Strait of Hormuz continue without significant disruptions. The analysts referred to reports of increased oil exports from Iraq.
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According to data cited by ING, Iraqi exports averaged 2.35 million barrels per day in August, with almost the entire volume shipped via southern routes. Analysts expect increased supplies to continue this month, as Iran has allowed vessels carrying Iraqi oil to pass through the Strait of Hormuz.
ING also noted that Saudi Arabia left unchanged the price of its flagship Arab Light grade for October deliveries. According to the analysts, this may indicate an easing of crude oil supply constraints, although fuel supplies remain tight in their assessment.
U.S. Vice President J.D. Vance said Washington does not plan to hold peace talks with Iran until it stops attacking vessels in the Strait of Hormuz. OilPrice believes that this position is adding pressure to oil prices.
