Oil Prices Hold Firm Amid Escalating Tensions in Persian Gulf

The ongoing tensions between Iran and the US have led to increased speculation in oil markets. Despite the escalation, oil continues to flow through the Strait of Hormuz, with US Navy escorts ensuring that around 9 million barrels per day are transported.

According to the latest data, speculators have increased their net long position in ICE Brent by buying 37,837 lots over the last reporting week. This brings the total net long position to 261,435 lots as of last Tuesday.

The US energy secretary noted that oil movement through the Strait of Hormuz is averaging around 9 million barrels per day, thanks to the presence of US Navy escorts. Meanwhile, OPEC+ kept its output quotas unchanged for October, but most members are expected to produce below their quota due to ongoing disruptions in the Persian Gulf.