Oil Prices Rise Amid US-Iran Tensions
Oil prices are on track for a second weekly rise as tensions between the US and Iran continue to disrupt supply from major oil-producing regions in the Middle East. The Brent crude futures price fell by $0.23, or 0.3%, to $93.55 per barrel, while U.S. West Texas Intermediate crude futures slipped by $0.33, or 0.4%, to $86.50 per barrel.
The current conflict has seen the Brent price gain more than 7% over the past five days, with WTI climbing over 8%. According to Tony Sycamore of IG, 'Both sides are dug in but lacking the luxury of time to play the waiting game, against a backdrop of crude prices grinding unerringly higher.'
The BMI, a unit of Fitch Solutions, has stated that it will review its Brent price outlook this month and noted that risks to the outlook are 'tilted to the upside.' Exports are under pressure due to disruptions in the Strait of Hormuz and the Red Sea.