Oil Prices Climb on West Asian Supply Disruptions
Oil prices rose for the fifth consecutive session on Thursday due to concerns over supply disruptions from West Asia, particularly in Iran. Brent crude futures climbed 26 cents or 0.28% to $91.87 a barrel, while US West Texas Intermediate (WTI) crude futures added 17 cents to $86 a barrel. The September WTI contract, which expires later on Thursday, gained 12 cents or 0.13% to $89.91.
According to Hiroyuki Kikukawa, chief strategist of Nissan Securities Investment, the market is likely to maintain a gradual upward trend due to uncertainty over peace talks and tensions involving the United Arab Emirates, Oman, and Iran. The UAE's decision to suspend all financial and economic transactions with Iran has refocused attention on strained ties between the two countries.
The ongoing war between the US and Iran has impacted oil supplies, particularly through the Strait of Hormuz, which is a critical waterway for global trade. Prior to the war, about one-fifth of global consumption moved through this route, but current flows are significantly below pre-war levels.