Hormuz Uncertainty Fuels Four-Day Oil Price Rally
Oil prices continued their upward trend on Wednesday for a fourth consecutive day due to ongoing uncertainty surrounding exports through the Strait of Hormuz.
The critical waterway remains shut to shipping, with Iran asserting it is closed and US President Donald Trump saying it's open. This conflicting information has led to increased shipping risks, keeping oil prices supported in the near term.
Brent crude futures rose 42 cents, or 0.5 percent, to $91.44 by 0630 GMT, while US West Texas Intermediate crude futures were up 51 cents, or 0.6 percent, to $85.45 a barrel.
Gulf producers are finding alternative export routes to bring oil out to the Gulf of Oman, which could help increase shut-in production from these two producers. However, this may not be sustainable in the long term.