Oil prices rose on Wednesday after falling to two-month lows in the previous session, as the market swung between hopes for a de-escalation in the Iran war and concerns about ongoing attacks on shipping in the Strait of Hormuz.
Brent futures climbed 71 cents, or 0.78 per cent, to $92.20 a barrel by 0119 GMT. US West Texas Intermediate (WTI) crude rose 49 cents, or 0.57 per cent, to $86.53.
New data showed that 37 ships were attacked in the Strait of Hormuz and surrounding waterways in October, the highest monthly total since the start of the war, according to the Washington Institute for Near East Policy. And 10 attacks have been recorded so far in November.
Videos posted on social media on Sunday and verified by Reuters showed a Navig8 tanker on fire near the coast of Oman, one of three tankers hit on Sunday for using "unauthorised routes" through the strait, according to the Iranian state broadcaster.
Another tanker was struck northeast of Oman's Lima, the United Kingdom Maritime Trade Operations (UKMTO) agency said on Tuesday. Iran's Revolutionary Guards Navy said in a separate statement on Tuesday that two tankers caught fire after hitting naval mines on the "unauthorized route" in the strait.
"Even in the event a deal is struck, an increase in flows through the waterway would still depend on mine clearance, insurance costs and whether or not shipowners would even be willing to take the risk," LSEG analysts said in a November 10 note. "Meanwhile, attacks have not slowed."
In the previous session, oil prices initially fell by more than $3 a barrel after US officials downplayed the need for further military strikes against Iran, but then gained back some of those losses after an Iranian security official said no talks were taking place between the two sides.
US crude oil stocks rose in the latest week, market sources said, citing data from the American Petroleum Institute. Crude stocks rose by 9 million barrels in the week ended November 6, the sources said.
In Russia, oil refining capacity has been reduced by about 30 per cent since late October following renewed Ukrainian drone attacks, industry sources said.
Russian and Ukrainian officials met in Abu Dhabi on Tuesday for their first peace talks since February as US President Donald Trump's envoys launched a fresh push to end the war.
Source: Reuters
– Agencies
