Middle East Tensions Support Oil Prices as Supplies Surge
Oil prices remained stable on Friday after rallying more than 4 percent in the previous session. The Brent benchmark, which tracks two-thirds of the world's oil, fell 0.05 percent to $102.10 a barrel at 9:07 am UAE time.
The West Texas Intermediate (WTI) gauge, which tracks US crude, was trading 0.31 percent lower at $92.58 a barrel. Traders were weighing the possibility of renewed Iran war hostilities against surging supplies from the Strait of Hormuz.
Daniel Richards, senior economist at Emirates NBD, said that shipping-related reassurance around the Strait of Hormuz and a possible opening on Iranian nuclear inspections weighed on prices. However, renewed US military deployments to the region kept the risk premium alive.
Oil flows through the Strait of Hormuz rose to their highest level last month since the Iran war began, with Saudi Arabia sending 2.9 million barrels per day in September, up from around one million bpd in August.