Supply risk in the Middle East continues to dominate the crude oil market, and international oil prices continue to rise on Thursday. Brent's oil is close to $92 per barrel, and the WTI goes up in parallel. This was the fifth consecutive day of trade in two benchmark oil prices, which had risen to a high level since 24 July.
The Holmuze Channel remains the focus.
The United States stock data, which had been unfavourable to oil prices, had not changed the direction of the market. Data show an increase of 4.4 million barrels in United States crude oil stocks. However, traders are now more concerned about the situation in the Middle East, especially the transport risks in the Strait of Hormuz.
D.C. and Tehran have made different statements about whether or not to keep the waterway open, raising market tensions. The Strait of Hormuz is the main route for global energy transport, and prior to the conflict, the flow of crude oil passing through the Strait accounted for about one fifth of global consumption.
The UAE has suspended its economic relations with Iraq.
The suspension of financial and economic transactions with Iran in the United Arab Emirates has further heightened market concerns about regional supply and shipping. Against this background, even if the United States stock rises, the purchase does not recede significantly.
In addition to the increase in crude oil stocks, United States distilled oil stocks have declined for the third consecutive week, and market concerns about the tight supply of finished oils, such as diesel, remain. This divided the oil market: the United States crude oil stock recovered, but the supply and transport risks in the Middle East continued to support prices.
The two oil species went up for five days.
As of August 20, European early pick-ups, the Brent crude oil futures delivered in October rose by 0.3 per cent to $91.87 per barrel; the WTI crude oil delivered in September was $86 and the more active October contract was $89.91.
In short, market concerns remain as to whether the Strait of Hormuz can be restored to stable passage and whether regional supply risks can be mitigated at the diplomatic level. If related concerns persist, geo-related factors may continue to dominate oil price volatility.