Oil Prices Rise as Investors Cautious on Iran-Oman Talks
Oil prices rose on Thursday as investors remained cautious about the outcome of Iran-Oman talks and whether they will restore flows through the Strait of Hormuz. The Brent crude futures gained 83 cents, or 1.04%, to $80.28 a barrel by 1158 GMT, while U.S. West Texas Intermediate futures added 61 cents, or 0.81%, to $75.83.
Tim Waterer, chief market analyst at KCM Trade, said that traders are still remembering the short-lived Memorandum of Understanding signed in June, so there is understandable anxiety that any new deal could prove equally fragile.
A proposed deal between Iran and Oman would give Tehran control over ships entering the Gulf through the Strait of Hormuz, a senior Iranian source and two regional officials told Reuters. The Strait of Hormuz handles about one-fifth of global daily oil and liquefied natural gas supplies.