Oil prices climbed on Wednesday, recovering from the previous session when they fell to their lowest level in two months. Traders are weighing hopes that the Iran war could ease against fresh attacks on ships in the Strait of Hormuz.
Brent futures rose 71 cents, or 0.78%, to $92.20 a barrel by 0119 GMT. US West Texas Intermediate crude gained 49 cents, or 0.57%, to $86.53.
Shipping under pressure
Data from the Washington Institute for Near East Policy shows that 37 ships were attacked in the Strait of Hormuz and nearby waters in October. That was the highest monthly total since the war began. Ten more attacks have been recorded so far in November.
Tankers hit at sea
Videos posted on social media on Sunday and verified by Reuters showed a Navig8 tanker on fire near the coast of Oman. Iranian state broadcaster said it was one of three tankers struck that day for using routes through the strait that were not authorised.
Another tanker was hit northeast of Lima in Oman, the UK Maritime Trade Operations (UKMTO) agency said on Tuesday. Separately, Iran’s Revolutionary Guards Navy said on Tuesday that two tankers caught fire after hitting naval mines on the same unapproved route.
A deal would not end the risk quickly
Analysts at LSEG said in a note dated November 10 that even if a deal were agreed, a rise in shipping through the waterway would depend on clearing mines, the cost of insurance, and whether shipowners were willing to take the risk.
Prices swung sharply in the previous session. They initially dropped by more than $3 a barrel after US officials played down the need for further military strikes against Iran. They then recovered some of those losses after an Iranian security official said no talks were taking place between the two sides.
Mixed signals on supply
US crude stocks rose in the latest week, market sources said, citing data from the American Petroleum Institute. Stocks climbed by 9 million barrels in the week ended November 6.
In Russia, oil refining capacity has dropped by about 30% since late October, industry sources said, following renewed Ukrainian drone attacks.
Diplomacy continues
Russian and Ukrainian officials met in Abu Dhabi on Tuesday for their first peace talks since February. The meeting came as envoys of US President Donald Trump launched a fresh effort to end the war.