Crude hovers near six-week highs as Hormuz supply worries persist
Crude was slightly higher around $91 a barrel, near six-week highs. Investors weighed Middle East escalation affecting Hormuz, with fewer vessels transiting and Iraq’s exports rising, while Russia plans oil production cuts.
Crude oil was slightly higher around $91 a barrel on Thursday, hovering at six-week highs as investors continued to monitor the situation in the Middle East, including the evolving strikes and their impact on oil supplies through Hormuz.
Iran claimed overnight strikes on US bases in the region and Israel indicated that it was prepared to return to the fighting if necessary.
Meanwhile, US President Trump said on Wednesday that the renewed hostilities in the Middle East would not last “too long”.
Despite the escalation, there were signs that crude supplies were still reaching the market.
Six commodity vessels transited the Strait of Hormuz on Wednesday, down from 11 on Tuesday and compared to the 10-day average of nearly 13, In addition, Iraq’s oil exports increased in August, with exports expected to rise further in September.
On the other hand, Russia intends to begin reducing oil production this year, according to the country's Deputy Prime Minister Novak.