Risks to oil shipments through the Strait of Hormuz Persist — Reuters

Oil prices rose slightly on November 6 following an earlier drop, but the market remains volatile due to the threat of disruptions in crude oil supplies from the Middle East. Investor sentiment is influenced by both expectations of an easing of tensions in the conflict with Iran and risks to shipping in the Strait of Hormuz, according to Reuters.

 

As of 05:04 GMT, Brent crude futures for January delivery rose by $1.29, or 1.31%, to $99.58 per barrel. U.S. WTI rose by 86 cents, or 0.95%, to $91.38. During morning trading, Brent prices briefly exceeded $100 per barrel.

KCM Chief Analyst Tim Waterer described this rise as a technical rebound following a sharp sell-off triggered by the market’s reaction to the U.S. election results.

At the same time, he said, risks to oil supplies have not gone away, and the election results have not put an end to attacks in the Strait of Hormuz.

Wotterer noted that without a reliable mechanism for safe and more accessible transit through the Persian Gulf, oil prices will remain sensitive to any reports of an escalation in the situation. This will create conditions for sharp price fluctuations, Reuters reports.

The foreign ministers of Iran and Oman discussed security in the Strait of Hormuz.

Iran reported damage to five tankers in the Strait of Hormuz.

The IRGC reported fires on two tankers in the Strait of Hormuz.