Tensions Fails to Push Oil Prices Above $100

Oil prices have failed to reach $100 per barrel despite ongoing tensions surrounding the Strait of Hormuz, according to recent reports. Since hitting lows in July, oil prices rebounded by about $15 but currently stand at around $85 per barrel.

The price of oil has fluctuated significantly since the start of the war with Iran, with a 40% swing between its peak and recent low. Analysts point to three key factors that have held back a sharp rise in prices: smaller-than-expected drawdowns in inventories, decreased demand from China, and increased production in various regions.

According to Natasha Kaneva, JPMorgan analyst, producers' efforts to maximize output have brought new volumes of oil to the market. This includes increased production from the US and South America.