Oil Prices Climb on Jobs Report and Strait of Hormuz Tensions
Oil prices have reversed course and are climbing after concerns over the Strait of Hormuz reopening plans. The U.S. economy lost 23,000 jobs in July, a factor that has contributed to oil price gains.
The Brent crude futures rose by 84 cents or 1.02% at $83.33 a barrel while West Texas Intermediate futures climbed 89 cents or 1.15% to $78.18.
The Strait of Hormuz, through which about one-fifth of the world's oil and liquefied natural gas passes, has seen tensions rise over the possible reopening plan that could include fees for ships using the waterway.
Iran is seeking between 5% to 7% of the price of cargoes from ships while Oman proposes a fee of about 3%. The U.S. wants no fees at all but this proposal is not easily workable due to U.S. sanctions and restrictive insurance clauses.