New York, Aug. 27 (SANA) Oil prices rose Thursday, reversing earlier losses as traders weighed signs of diplomatic progress involving Iran against lingering risks to Middle East energy supplies.
Brent crude futures gained 71 cents, or 0.81%, to $88.55 a barrel at 1128 GMT, while US West Texas Intermediate crude rose 28 cents, or 0.34%, to $82.51.
Earlier, Brent fell as low as $86.22 a barrel and WTI to $80.65.
Hormuz remains key market risk
Markets are closely watching the Strait of Hormuz, a key route for Gulf energy exports that handled about one-fifth of global daily oil and liquefied natural gas supplies before the conflict involving the United States, Israel and Iran began in late February.
Shipping traffic through the strait rose slightly Wednesday, while Iran and Oman were working to finalize details of an agreement over the waterway. Qatar’s prime minister was also due to visit Iran on Thursday to pursue diplomatic talks.
Analysts said a fuller reopening of Hormuz could push crude prices lower, while stalled negotiations could quickly restore a risk premium.
Supply concerns persist
The United States has halted attacks on Iran for about a month and is seeking to increase economic pressure on Tehran, raising expectations that Gulf supply disruptions could ease.
However, uncertainty remains over Iran’s nuclear program and the future of the Strait of Hormuz.
Strategic petroleum reserve releases have helped offset supply disruptions, but analysts said those releases are expected to end soon, potentially accelerating inventory declines if shipping conditions do not improve.
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