WTI edges up to $83.27, extending five-session oil rally

New York oil futures rose for a fifth straight session on the 12th, though the advance was limited as geopolitical supply fears competed with softer demand signals. The benchmark U.S. West Texas Intermediate (WTI) September contract settled at $83.27 a barrel, up $0.07 from the previous day, after closing at $83.20 on the 11th, when it had gained $1.07. In London, Brent crude for October delivery briefly reached $90.03, its highest level in more than a week, before settling at $88.91, up about 1.4%. The main support came from uncertainty over U.S.-Iran negotiations tied to the reopening of the Strait of Hormuz, a key oil shipping chokepoint. Mohsen Rezaei, secretary of Iran's Supreme National Security Council (SNSC) (Iran's top security body), reportedly said the security of energy transport routes could be threatened if the United States does not accept Iran's conditions. Shipping data showed only six vessels transited the strait as of the 11th, well below the average of 11 vessels a day over the past 10 days, reinforcing concerns that Middle East tensions may be starting to disrupt physical flows. At the same time, upside was capped by reports that mediator Pakistan said the talks were nearing "some form" of agreement, by OPEC's lower global oil demand forecast for this year, and by American Petroleum Institute (API) data showing an unexpected crude inventory build of about 9.1 million barrels. Gasoline stocks fell 1.5 million barrels and distillate inventories dropped roughly 600,000 barrels. Traders are watching the U.S.-Iran talks as the key near-term driver: a breakdown could make the risk of a Strait of Hormuz blockade more tangible and lift prices sharply, while an agreement could ease supply fears and pull prices lower.

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