Oil prices extended their gains on Thursday, rising for a fifth consecutive session as uncertainty surrounding the U.S.-Israeli war against Iran continued to raise concerns about supply disruptions from the Middle East.
Brent crude futures for October delivery rose 35 cents, or 0.38%, to $91.97 a barrel by 0632 GMT. U.S. West Texas Intermediate (WTI) crude futures for September delivery gained 17 cents to $86.00 a barrel.
The more-active October WTI contract also climbed 38 cents, or 0.45%, to $84.77 a barrel.
Both Brent and WTI settled at their highest levels since July 24 on Wednesday, extending a rally that has been supported by concerns over crude supplies from the Middle East. The September WTI contract is due to expire later on Thursday.
Hiroyuki Kikukawa, chief strategist at Nissan Securities Investment, said oil prices remained elevated as sporadic attacks in the Middle East continued to support the market, although the absence of a major escalation had limited further gains.
“The market is likely to maintain a gradual upward trend given uncertainty over peace talks and tensions involving the United Arab Emirates, Oman and Iran,” Kikukawa said.
The UAE’s decision to suspend all financial and economic transactions with Iran until further notice has also renewed attention on relations between the Gulf oil producer and Iran.
The Strait of Hormuz remains a key focus for oil markets. The waterway is a critical transit route for global energy supplies, and disruptions have significantly reduced shipping flows since the war began on February 28.
U.S. President Donald Trump said on Tuesday that no talks were taking place with Iran and that the Strait of Hormuz was open. Iran, however, maintained that the waterway remained closed.
The latest shipping data showed that traffic through the Strait of Hormuz remained unchanged on Wednesday from the previous day, as efforts to end the conflict between the United States and Iran remained deadlocked.
Before the war, shipments equivalent to about one-fifth of global oil consumption passed through the waterway. Current flows remain significantly below pre-war levels.
The conflict has also affected refined fuel supplies and contributed to declining inventories as reduced crude availability puts pressure on refiners.
In the United States, stockpiles of distillate fuels, including diesel and heating oil, fell for a third consecutive week last week, according to data from the Energy Information Administration.
However, U.S. crude inventories increased by 4.4 million barrels in the week ended August 14, sharply exceeding analysts’ expectations for a 600,000-barrel draw.
The rise in crude inventories could limit some of the upward pressure on prices, but ongoing geopolitical uncertainty and disruptions around the Strait of Hormuz continue to keep supply risks at the centre of the oil market.
