Oil steadied as traders weighed increased flows through the Strait of Hormuz against a pickup in Iranian attacks against vessels. West Texas Intermediate traded below $90 a barrel after a volatile session on Tuesday, while Brent settled near $101.
While shipments through Hormuz have picked up in recent weeks, UK Maritime Trade Operations has reported at least nine attacks in the waterway so far this month. That’s already half of the number recorded across Hormuz and Persian Gulf combined last month.
Crude has rallied sharply this year as the US-Iran war disrupted energy flows from the Middle East, fanning inflation. Leading oil executives including Shell Plc’s Wael Sawan have warned this week that the world is running out of stopgaps to manage the impact of the conflict, with global stockpiles being drawn down and product prices including diesel still elevated.
President Donald Trump said he is weighing a suspension of the federal gas tax, as his administration looks for ways to ease costs ahead of November’s midterm elections. Earlier this week, the US leader relaxed rules on the usage of diesel, allowing truckers to burn fuel normally reserved for tractors.
Stockpiles were also in focus. US crude inventories fell by 2.1 million barrels last week, according to an estimate from the industry-funded American Petroleum Institute seen by Bloomberg. The snapshot also showed a drop in gasoline holdings. Official data are due on later on Wednesday.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing