Brent crude oil continues to trade above 100 dollars per barrel
Oil prices maintain their high levels as conflicts in the Middle East and attacks on maritime transport heighten supply concerns.
Following Brent crude oil surpassing the 100 dollar per barrel level, oil markets followed a flat course on Thursday. Investors are bracing for deeper supply disruptions due to conflicts between the US and Iran, as well as attacks targeting maritime transport.
Current Figures in the Markets
Brent crude traded at 101.10 dollars after registering a 0.1 percent decline. US crude oil (WTI) found buyers at 96.24 dollars with a 0.2 percent increase.
Since the lows seen in early August, Brent prices have recorded an increase of approximately 30 percent.
Tension Between the US and Iran
The failure to reach a lasting agreement to end the conflicts and the resumption of clashes later in the month supported prices upward.
Iran announced on Wednesday that it had attacked ten ships near the Strait of Hormuz following the US sinking of five Iranian oil tankers.
Regional Shipment Threats
The Iranian Revolutionary Guard publicly announced that it would retaliate against new attacks and escalate its response.
The increase in attacks against Saudi Arabia by Houthis linked to Iran directly threatens crude oil shipments carried out via the Red Sea.
Analyst Assessments
ANZ analyst Daniel Hynes stated that reciprocal attacks mean oil flows from the Persian Gulf will continue to face disruptions for the foreseeable future.
OCBC analyst Christopher Wong expressed that uncertainty regarding how much oil is actually coming out of the Strait of Hormuz keeps the markets tight.
Global Inventories and Forecasts
The US Energy Information Administration (EIA) stated on Wednesday that global oil inventories have declined due to diminishing supply from the Middle East.
Citing this development, the agency revised its oil price forecasts for this year and next year upward.