Brent and WTI crude extended their rallies to a sixth and fifth straight day, respectively, after attacks on two ships in the Middle East and a breakdown in US-Iran ceasefire talks revived supply fears. A sharp build in U.S. crude stockpiles briefly capped gains before prices resumed climbing.
Brent futures rose 17 cents, or 0.2%, to $89.08 a barrel by 1055 GMT on Wednesday, a sixth straight day of gains. U.S. West Texas Intermediate crude added 20 cents, or 0.2%, to $83.40, its fifth daily gain in a row. Attacks on two ships in the Middle East and a deadlock in US-Iran talks drove the moves, reinforcing worries about disruptions to regional supply.
Both contracts earlier rose more than $1 before dipping as traders weighed U.S. crude stockpile data that industry sources indicated might have swelled. Prices then resumed their climb after a senior Iranian source told Reuters there were no talks between Iran and the United States to extend their ceasefire, because from Tehran's perspective the deal had no start date and therefore nothing to extend.
Two ships attacked in key Middle East straits
The United States and Yemen's Iran-aligned Houthis reported separate attacks on shipping in the Strait of Hormuz and the Bab el-Mandeb Strait on Tuesday, two crucial export routes for Middle Eastern oil and gas alongside the Suez Canal. As a result, the number of vessels transiting Hormuz fell to a one-week low of eight on Tuesday, down from the 125 to 140 vessels that passed through the waterway daily before the war.
US crude stockpiles post a sharp build
Market sources citing American Petroleum Institute data said crude inventories rose by about 9.1 million barrels from the previous week, while gasoline and distillate stocks fell by 1.5 million barrels and 596,000 barrels, respectively. The crude build far exceeded expectations and, if confirmed by the Energy Information Administration report due at 10:30 a.m. ET, could ease market concerns about supply tightness, Haitong Futures said in a note.
Libya fire contained, EIA flags disruptions into 2027
In Libya, the country's National Oil Corporation said all fires at fuel storage tanks in the Zawiya oil complex were under control, also easing upward price pressure. For the longer term, the EIA expects significant disruptions to Middle East crude supplies to persist through the end of 2027, and it projects 2026 Brent prices to average $86.81 a barrel and WTI to average $80.88.
Source: Reuters
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