Brent crude climbed $1.33/bbl to $72.95/bbl after fresh attacks on commercial ships in the Strait of Hormuz. A rise in US crude oil rig activity applied some downward pressure.
Brent crude moved higher after commercial ships transiting the Strait of Hormuz came under attack again. The front-month ICE Brent contract gained $1.33/bbl to trade at $72.95/bbl at 09.00 GMT.
Attacks return to the Strait of Hormuz
An LNG carrier, the Al Rekayyat, was hit by an unknown projectile on the port side, causing a fire earlier today, according to the United Kingdom Maritime Trade Operations. The vessel was laden with LNG when it came under attack.
The strikes did not stop there. Iran’s Islamic Revolutionary Guard Corps launched at least two missiles at commercial ships transiting the strait via the Omani corridor yesterday.
Traffic through the region has not recovered. According to ANZ Bank’s senior commodity strategist Daniel Hynes, the initial rebound in vessel transits after the US-Iran temporary peace accord “has stalled”, with crossings still in single digits and no sustained recovery evident.
US drilling caps the rally
Rising US supply pulled in the other direction. Brent felt some downward pressure after Baker Hughes reported a rise in US crude oil rig activity.
The total number of rigs drilling for crude oil in the US increased by five over the week, to 445 units. The oil rig count is watched as an indicator of future output, reflecting how much drilling activity is happening, or expected, in the shale sector.
Source: engine.online
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