Oil gains over $1 on Strait of Hormuz shipping disruptions, Russia tensions
USO•Oil prices rose more than $1 a barrel on Thursday as shipping disruptions in the Strait of Hormuz and geopolitical tensions offset pressure from rising crude output. Brent was up 1.3% at $93.96, while U.S. West Texas Intermediate gained 0.6% to $87.06.
1. Shipping disruption supports prices
Oil prices rose after trading steady to lower earlier, as disruptions to shipping through the Strait of Hormuz and broader geopolitical tensions offset pressure from rising crude output. President Donald Trump wrote on social media that the United States did not need a deal with Iran. Iran's military said four oil tankers were hit by explosions in the strait after ignoring warnings; the accounts could not immediately be verified.
2. Output and other pressures
OPEC+ crude production rose in October, driven by higher Saudi Arabian output. The Energy Information Administration said U.S. crude, gasoline and distillate inventories rose last week. Ukraine said its drone attacks targeted the port area of Ust-Luga in Russia, triggering a fire and damaging part of its fuel-tank network.
