Oil prices accelerated their rise on Thursday afternoon as investors continued to monitor the Iran-Israel conflict, fearing supply disruptions if it escalates further.
The price of August Brent futures on the London ICE Futures exchange rose by $0.63 (0.82%) to $77.33 per barrel as of 13:53 GMT.
WTI oil contracts for July on the New York Mercantile Exchange (NYMEX) rose by $1.07 (1.42%) to $76.21 per barrel.
The situation in the Middle East remains in the spotlight. Investors are most concerned about the threat of restrictions on shipping in the Strait of Hormuz, which could lead to significant disruptions in oil supplies. The lack of clarity regarding US plans for involvement in the Iranian-Israeli conflict is negatively affecting market sentiment.
US President Donald Trump said on Wednesday that he had not yet made a final decision on how to resolve the Iranian issue. He reiterated that he did not rule out resuming talks with Tehran. At the same time, Trump noted that the outcome should be guarantees that Tehran will not have nuclear weapons.
The unpredictability that characterizes Trump’s foreign policy “is causing nervousness in a market that is looking for clearer signals that could affect global oil supplies and regional stability,” said Priyanka Sachdeva, an analyst at brokerage firm Phillip Nova.
RBC Capital Markets analyst Helima Croft believes that the threat of serious supply disruptions will increase if Iran feels a real threat to its existence. In her opinion, US involvement in the conflict could provoke direct attacks on tankers and energy infrastructure.
Meanwhile, according to data published yesterday by the US Department of Energy, commercial oil reserves in the country fell by 11.473 million barrels last week, marking a record drop since June last year. Experts had expected a decline of 2.3 million barrels, according to Trading Economics.
Gasoline inventories increased by 209,000 barrels, distillates by 514,000 barrels. Inventories at the Cushing terminal, where oil traded on the New York Mercantile Exchange (NYMEX) is stored, fell by 995,000 barrels.
