Oil gains as investors cautious over Iran-Oman talk progress
XLE•Shipping disruption worries remain in focus
Prices have returned to the levels seen when the United States and Iran signed an interim peace agreement on June 17, with investors closely watching whether the two sides can reach a final deal, said Yuki Takashima, economist at Nomura Securities.
Takashima said concerns that Houthi attacks could hit Red Sea shipping were limiting optimism about the outlook for an end to shipping disruptions in the Middle East.
Yemen's Iran-aligned Houthis said on Wednesday they had launched a missile attack on a Saudi oil tanker off the coast of the kingdom's Red Sea port city of Yanbu and another missile attack on a Saudi oil tanker in the nearby Gulf of Aden. There was no confirmation from Saudi Arabia on either incident.
Gulf countries' crude oil and condensate exports were largely steady in July and remained about 40% below pre-war levels, shipping data showed.
