Crude Oil Prices Edge Higher

Crude oil prices edged higher on Wednesday, approaching $90 a barrel, as concerns over further supply disruptions in the Middle East intensified despite signs that crude flows are gradually recovering. The Houthis claimed new attacks on airports and military facilities in Saudi Arabia on Wednesday, while a spokesperson for the Saudi-led coalition fighting the Houthis said a ballistic missile had been intercepted north of Riyadh. Meanwhile, reports showed Iran has intensified attacks on tankers in the Strait of Hormuz in recent days. Despite the latest developments, energy flows from the Persian Gulf are showing signs of recovery. Tankers have continued to pass through the Strait of Hormuz, albeit discreetly, despite heightened security risks, while Saudi Arabia’s East-West oil pipeline has restored crude pumping capacity to 5.8 million barrels per day. In the US, EIA data showed that crude inventories fell by 3.186 million barrels last week, the largest weekly draw in five weeks.