Oil Falls as Middle Eastern Flows Come Back into Focus
Oil prices have fallen as traders look for further signals about Middle Eastern flows. Brent crude, which is traded in December, dropped below $97 a barrel after rising almost 2% on Wednesday. West Texas Intermediate (WTI) was near $89 a barrel.
The increase in crude flows from the region is closing in on pre-war levels, but fuel supplies have yet to recover to the same extent. The US and Iran failed to make headway towards a lasting peace agreement that would fully reopen the Strait of Hormuz.
US President Donald Trump said the US has total control of the waterway and will have an answer to Iran shortly. Rebecca Babin, senior energy trader at CIBC Private Wealth Group, said reports of increased flows through Hormuz look directionally correct, even if the exact volumes are difficult to verify.