Crude oil extends gains above $91.50 as Strait of Hormuz disruption risks persist
Crude oil rose above $91.50 a barrel, extending a six-week high. Iran attacks on US Gulf allies and ongoing Strait of Hormuz disruptions are expected to outlast prior expectations, with no normalization by year-end.
Crude oil prices rose above $91.50 a barrel on Thursday, extending a six-week high as Iran continued strikes against US Gulf allies.
Kuwait’s armed forces said the kingdom was facing “ongoing Iranian aggression” as its air defenses engaged missiles and drones.
Iran retaliated after US strikes on Tuesday by targeting US regional allies Jordan and Bahrain.
Six commodity vessels transited the Strait of Hormuz on Wednesday, down from 11 on Tuesday and compared with a 10-day average of nearly 13.
Japan’s Mitsui O.S.K.
Lines, the world’s largest tanker operator, expects disruptions at the Strait of Hormuz to persist longer than previously anticipated, with no normalization by year-end following this week’s renewed escalation in hostilities.
Damaged refineries in the Middle East and Russia, along with insufficient capacity elsewhere to offset supply disruptions, are likely to keep global fuel prices elevated into next year.