Oil Prices rose for a fourth consecutive session on Wednesday as investors assessed uncertainty over oil supplies amid conflicting statements from Washington and Tehran about the Strait of Hormuz.
Brent crude futures gained 26 cents, or 0.29%, to $91.28 a barrel by 0004 GMT. US West Texas Intermediate crude futures also rose 37 cents to $85.31.
Both benchmarks closed at their highest levels since July 24 on Tuesday as hopes for a lasting peace agreement between the United States and Iran weakened.
US President Donald Trump said on Tuesday that no talks with Iran were taking place. He also insisted that the Strait of Hormuz remained open to shipping.
Iran, however, has maintained that the strategically important waterway remains closed, creating further uncertainty for global energy markets.
Supply Concerns Grow
A temporary ceasefire agreement between the United States and Iran expired on Monday. A senior Iranian official told Reuters that Tehran was moving towards a more offensive military posture because of the diplomatic deadlock.
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However, no fresh strikes by either side were reported on Tuesday.
The uncertainty has prompted countries and companies to explore alternatives to the Strait of Hormuz, a major route for global oil shipments.
Iraq’s cabinet approved a mechanism on Tuesday to export crude through specialised international and local companies using multiple outlets. The contracts will run for three months from September 1.
Meanwhile, two major Chinese shipping companies have stopped sending oil tankers through the Strait of Hormuz and the Bab al-Mandeb Strait, according to industry executives, tanker trackers and a ship broker.
Instead, the companies are collecting oil cargoes outside the Gulf as the regional conflict continues.
US Inventories in Focus
Market participants are also watching US oil inventory data for further signals about supply and demand.
US crude oil and distillate inventories declined last week, while gasoline stocks increased, according to data cited from the American Petroleum Institute.
The US Energy Information Administration is due to release official inventory figures later on Wednesday.
Analysts surveyed by Reuters expect US crude inventories to have fallen by about 600,000 barrels during the week ending August 14.
Further declines could provide additional support to crude prices, although developments around the Strait of Hormuz remain the key factor for markets.
