Oil Prices Rise as Traders Reassess Strait of Hormuz Shipping Flows
Oil prices rose over 1% on Friday as traders reassessed shipping flows through the Strait of Hormuz following reports that some tankers were forced to turn around. Brent futures climbed $1.01, or 1.13%, to $90.04 a barrel, while U.S. West Texas Intermediate (WTI) crude rose $1.18, or 1.41%, to $84.77 a barrel.
The rise came as two Very Large Crude Carriers (VLCCs) exited the strait on Friday, although traffic through the waterway remained thin, according to Kpler ship-tracking data. In contrast, 29 commodities vessels passed through the Bab el-Mandeb strait on Thursday.
UBS analyst Giovanni Staunovo attributed the price rise to low flows of vessels crossing the Strait of Hormuz, while SEB Research's Ole Hvalbye noted that 'the market has stopped trading the war and started trading shipping data.'