Brent rises to $104.36 amid Iran war
By the AFREEQUE newsroom, based on Business Day (South Africa)
Brent rose 0.7% to $104.36 a barrel, while US West Texas Intermediate also gained 0.7% to $96.72. Investors remain focused on supply risks linked to the Strait of Hormuz and negotiations over the war in Iran, reports Business Day.
Brent crude rose 76 cents, or 0.7%, to $104.36 a barrel on Wednesday morning, in a volatile session marked by anticipation of Washington’s next decisions in the war between the United States, Israel and Iran, according to Reuters. US West Texas Intermediate crude gained 63 cents, to $96.72.
Investors were monitoring Qatar’s mediation efforts to prevent a further escalation of attacks, while an Iranian official said on Tuesday that Tehran and Washington remained far from an agreement to end the war. The United States carried out strikes described as “defensive” on the Iranian island of Qeshm, targeting surface-to-air missiles used against its forces, according to a US official quoted by Reuters.
US crude inventories fell by 5.27 million barrels in the week ending 30 October, according to data from the American Petroleum Institute cited by market sources. Petrol inventories rose by 1.43 million barrels, while distillate stocks fell by 1.19 million.
The fall in diesel stocks and the risks of supply disruption around the Strait of Hormuz are supporting prices, according to Haitong Futures. Priyanka Sachdeva, head of market research at Phillip Nova, nevertheless said Donald Trump’s conflicting signals, between continuing the strikes and an expressed desire to limit escalation, were making it harder for traders to anticipate developments. Brent’s recovery comes after its 4.43% fall to $108.40 on 3 November.
