Brent holds above $96 as Middle East supply concerns persist
Brent stayed slightly above $96 on Thursday near six-week highs as investors weighed Middle East developments. Six vessels transited Hormuz Wednesday versus 11 Tuesday, while Iraq exports rose in August and Russia plans to reduce production this year.
Brent was slightly higher above $96 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.