Oil Prices Hold Near Three-Week High Amid Strait of Hormuz Uncertainty
Oil prices have maintained their position near a three-week high, despite some gains being trimmed earlier in the day. The uncertainty surrounding shipping through the Strait of Hormuz and ongoing supply disruptions continue to impact markets.
Brent crude futures were up by 18 cents at $91.20, while U.S. West Texas Intermediate crude futures rose by 16 cents at $85.10 a barrel. These prices represent Brent's highest level since July 30 and WTI's highest since July 31.
According to Saxo Bank analyst Ole Hansen, the announcement of increased Treasury buybacks from the Federal Reserve boosted risk appetite and led to a decline in the dollar value by around 0.5%. This had a stronger impact on oil prices in other currencies.
KCM chief market analyst Tim Waterer noted that confidence in safe passage through Hormuz remains low, with shipping volumes running below normal levels due to ongoing uncertainty.