Oil prices climbed on Thursday on concerns the impasse in the U.S.-Israeli war against Iran will continue to disrupt supply from the key Middle Eastern producing region and tighten global supplies.
Brent crude futures for October delivery rose 26 cents, or 0.28%, to $91.87 a barrel by 0439 GMT, while U.S. West Texas Intermediate crude futures for September added 17 cents to $86 a barrel. The more-active October WTI contract gained 12 cents, or 0.13%, to $89.91.
Both Brent and WTI benchmarks gained for a fifth straight session on Thursday, having settled on Wednesday at their highest since July 24. The September WTI contract expires later on Thursday.
“Oil prices remained elevated as the market is supported by sporadic attacks in the Middle East but lacks fresh momentum without a major escalation,” said Hiroyuki Kikukawa, chief strategist of Nissan Securities Investment, a unit of Nissan Securities.
“The market is likely to maintain a gradual upward trend given uncertainty over peace talks and tensions involving the United Arab Emirates, Oman and Iran,” he added.
The UAE’s decision to suspend all financial and economic transactions with Iran until further notice has refocused the spotlight on fraught ties between the major Gulf Arab oil producer and Iran.
On Tuesday, U.S. President Donald Trump said no talks were taking place with Iran and that the Strait of Hormuz was open. Iran, however, said the waterway remained shut.
Shipping traffic through the Strait of Hormuz on Wednesday was unchanged from the day before as discussions to end the war between the United States and Iran remained deadlocked, according to the latest shipping data.
Prior to the war that began on Feb. 28, shipments equal to about one-fifth of global consumption moved through the waterway, with current flows far below pre-war levels.
The war has also impacted the supply of refined fuels and drawn down inventories with less crude available to refiners.
U.S. stockpiles of distillate fuel, including diesel and heating oil, fell last week for a third week, the Energy Information Administration said on Wednesday.
However, crude inventories rose by 4.4 million barrels in the week ended on August 14, compared with estimates for a 600,000-barrel draw.
(Reporting by Yuka Obayashi in Tokyo and Siyi Liu in Singapore; Editing by Tom Hogue and Christian Schmollinger)