Oil rebounds as Hormuz shipping attacks blunt hopes for Iran truce
USO•Brent rose 1.1% to $92.53 a barrel and U.S. WTI gained 0.8% to $86.71 as shipping attacks in the Strait of Hormuz tempered hopes for a U.S.-Iran truce. U.S. crude stocks rose by 9 million barrels in the week ended November 6, market sources said, citing API data.
1. Prices rebound
Oil prices rose on Wednesday from the previous session’s two-month lows, as markets weighed hopes for de-escalation in the U.S.-Israeli war on Iran against concerns about attacks on shipping in the Strait of Hormuz. Brent futures gained $1.04, or 1.1%, to $92.53 a barrel, while U.S. West Texas Intermediate rose 67 cents, or 0.8%, to $86.71.
2. Shipping risks persist
A tanker was struck northeast of Lima in Oman, the United Kingdom Maritime Trade Operations agency said on Tuesday. Iran’s Revolutionary Guards Navy said two tankers caught fire after hitting naval mines on what it called an “unauthorized route” in the strait. Data from the Washington Institute for Near East Policy showed 37 ships were attacked in October, the highest monthly total since the start of the Middle East war.
3. Stocks and supply
Market sources said U.S. crude stocks rose by 9 million barrels in the week ended November 6, citing American Petroleum Institute data. In Russia, refining capacity has fallen by about 30% since late October following renewed Ukrainian drone attacks, industry sources said.
