Oil prices increased on Thursday, with Brent crude futures rising 1.01% to $88.09 per barrel and U.S. West Texas Intermediate futures climbing 1.15% to $82.31 per barrel.
This uptick is largely attributed to recent deadly attacks on vessels in the Gulf of Oman and the Red Sea, as well as a significant oil spill near Oman from a tanker that ran aground in June, leaking an estimated 800,000 barrels of Russian oil. The spill is affecting a nature reserve and has raised environmental concerns.
Additionally, the International Energy Agency (IEA) reported that global oil demand is expected to decline more than previously anticipated this year, exacerbated by the ongoing closure of the Strait of Hormuz. The IEA noted that supply was 6.3 million barrels a day lower year-on-year in July, and the current geopolitical tensions are further complicating efforts to stabilize oil supply.
Christopher Tahir, a senior market strategist at Exness, indicated that the uncertainty surrounding the reopening of the Strait of Hormuz could lead to higher oil prices, particularly if additional disruptions occur