Brent Approaches $97

Brent was slightly higher above $96 a barrel on Thursday, hovering at six-week highs as investors continued to monitor the situation in the Middle East, including the evolving strikes and their impact on oil supplies through Hormuz. Iran claimed overnight strikes on US bases in the region and Israel indicated that it was prepared to return to the fighting if necessary. Meanwhile, US President Trump said on Wednesday that the renewed hostilities in the Middle East would not last “too long”. Despite the escalation, there were signs that crude supplies were still reaching the market. Six commodity vessels transited the Strait of Hormuz on Wednesday, down from 11 on Tuesday and compared to the 10-day average of nearly 13, according to Reuters. In addition, Iraq’s oil exports increased in August, with exports expected to rise further in September. On the other hand, Russia intends to begin reducing oil production this year, according to the country's Deputy Prime Minister Novak.

Brent prices remained volatile on Thursday, swinging around $96 a barrel and trading near their highest levels in more than a month as investors continued to monitor the situation in the Middle East, including the evolving strikes and their impact on oil supplies through Hormuz. Hostilities resumed earlier this week for the first time since July, with the US striking Iran and Tehran responding with attacks on US bases in Bahrain, Jordan, Kuwait and Iraq. Meanwhile, US President Trump said on Wednesday that the renewed hostilities in the Middle East would not last “too long”. Despite the escalation, there were signs that crude supplies were still reaching the market. Six commodity vessels transited the Strait of Hormuz on Wednesday, down from 11 on Tuesday and compared to the 10-day average of nearly 13, according to Reuters. In addition, Iraq’s oil exports increased to around 2.34 million barrels per day (bpd) in August, with exports expected to rise further in September.

Brent crude fell to around $95 per barrel on Thursday, snapping a three-day rally as investors assessed renewed hostilities in the Middle East alongside efforts to reopen the Strait of Hormuz. President Donald Trump said the latest attacks on Iran would be short-lived despite indicating that the US remains prepared for further strikes, while reiterating claims that the US controls Hormuz. The US launched fresh strikes on Iranian targets around the strategic waterway this week following roughly a month of relative calm, prompting Tehran to retaliate with drones and missiles targeting American bases across the Middle East. Despite the renewed hostilities, crude shipments continued to pass through the strait at an estimated average of 8 million barrels a day. In the US, official data showed crude inventories declined by 4.5 million barrels last week, marking their first drop since late July.