US-Iran Deal Doubts Fuel Oil Price Rise
Oil prices rose on Wednesday as doubts about a US-Iran peace deal and attacks on two ships fueled concerns about Middle East supply disruptions. Brent futures gained $0.72, or 0.81%, to $89.63 a barrel by 0053 GMT, while US West Texas Intermediate (WTI) crude climbed $0.71, or 0.85%, to $83.91.
The rise in prices came despite industry data showing that US crude inventories expanded. A Reuters poll showed on Tuesday that US crude oil and fuel inventories were expected to have fallen last week, but market sources citing American Petroleum Institute data said US crude inventories rose sharply in the week ended August 7.
The United States and Yemen's Iran-aligned Houthis reported separate attacks on shipping in the Strait of Hormuz and the Bab el-Mandeb Strait on Tuesday. Iran's top security official, Mohsen Rezaei, said that the vital Strait of Hormuz shipping route would remain closed unless the US accepted Iran's conditions for ending the war.
The EIA expected disruptions of about 600,000 barrels per day to Middle East crude oil supplies to persist through the end of 2027. If confirmed by the EIA report later on Wednesday, the crude build could ease market concerns about supply tightness.