Oil Prices Climb Amid Middle East Supply Concerns
Oil prices rose on Thursday amid concerns over supply disruptions in the Middle East, particularly due to tensions between the UAE and Iran. Brent crude futures for October delivery increased by $0.26 or 0.28%, reaching $91.87 a barrel.
The US West Texas Intermediate (WTI) crude futures for September added $0.17, while the more-active October WTI contract gained $0.12 or 0.13% to $89.91. The market's upward trend is expected to continue due to uncertainty over peace talks and tensions involving major Gulf Arab oil producers.
Hiroyuki Kikukawa, chief strategist of Nissan Securities Investment, noted that '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.'
The Strait of Hormuz remained shut on Wednesday, with shipping traffic unchanged from the day before. Prior to the US-Iran war, which began on February 28, approximately one-fifth of global oil consumption moved through the waterway.