Crude oil holds above $84 on Middle East impasse
Crude stays above $84 per barrel after a 3%+ weekly gain, as US-Iran tensions over the Strait of Hormuz and UAE-Iran sanctions concerns support prices.
Crude oil held above $84 per barrel on Thursday after gaining more than 3% so far this week, supported by heightened uncertainty in the Middle East as the US and Iran remain at an impasse.
The two sides are also embroiled in a confrontation over the Strait of Hormuz, although President Donald Trump said oil continues to flow through the waterway while adding that he would be open to resuming talks with Tehran “at some point.” Meanwhile, the UAE announced a suspension of financial and economic transactions with Iran after accusing Tehran of launching ballistic missiles at its territory, adding to economic pressure on the Islamic Republic.
Despite the elevated risks, Gulf producers have continued transporting significant volumes of crude through alternative routes and discreet shipments.
In the US, EIA data showed crude inventories increased by 4.4 million barrels last week, while distillate stocks declined by 1.5 million barrels to their lowest level in more than a month.