Oil prices rise again in global market

Oil prices rose in the international market on Wednesday amid fading prospects of easing tensions in the Iran war and ongoing fears of attacks on shipping vessels in the Strait of Hormuz. This followed a drop in fuel prices on Tuesday to their lowest level in two months.

At 1:19 AM Greenwich Mean Time on Wednesday, Brent crude oil futures rose by 71 cents, or 0.78 percent, to $92.20 per barrel in international markets. At the same time, U.S. West Texas Intermediate (WTI) crude oil rose by 49 cents, or 0.57 percent, to $86.53 per barrel. According to new data, 37 vessels were attacked in the Strait of Hormuz and surrounding waterways last October.

This is the highest number of attacks on ships in a single month since the start of the Iran war. According to data from the Washington Institute for Near East Policy, 10 attacks have already occurred so far this November.

Reuters has verified several videos published on social media on Sunday. These videos show a fire burning on an oil tanker belonging to Navig8 Company near the coast of Oman.

Iran's state broadcaster reported that three tankers were attacked on Sunday for navigating through "unauthorized routes" in the Strait of Hormuz, one of which was Navig8's tanker.

The United Kingdom Maritime Trade Operations (UKMTO) reported on Tuesday that another tanker was attacked northeast of Oman's Lima area. Meanwhile, the Navy of Iran's Islamic Revolutionary Guard Corps (IRGC) said in a statement on Tuesday that two tankers caught fire after striking sea mines or explosive devices while navigating through "unauthorized routes" in the Strait of Hormuz.

Analysts at the London Stock Exchange Group (LSEG) stated in a November 10 report that even if an agreement is reached, whether shipping through the Strait of Hormuz will normalize depends on several factors.

These include the clearance of sea mines, insurance costs, and the willingness of vessel owners to operate under risk.

They further noted that attacks on ships in the strait have not yet decreased. Earlier on Tuesday, oil prices dropped by more than $3 at the start of trading after U.S. officials commented that a new military strike on Iran was unnecessary. However, prices rebounded slightly later. Meanwhile, an Iranian security official stated that no negotiations are currently taking place between the two countries.

Market sources indicated that U.S. crude oil inventories increased last week. According to the American Petroleum Institute, U.S. oil inventories rose by 9 million barrels in the week ending November 6. On the other hand, Russia's oil refining capacity has dropped by about 30 percent. Industry sources reported that Russia's refining capacity declined due to fresh drone attacks by Ukraine since late October.

Meanwhile, representatives of U.S. President Donald Trump have taken new initiatives to end the war. As part of this effort, Russian and Ukrainian officials sat down for a meeting in Abu Dhabi on Tuesday. This marks the first peace talks between the two countries since February.

Source: Reuters

-MT