Oil prices rise by more than $1 on Thursday

Oil prices rose by more than $1 on Thursday, extending gains amid stalled talks between the United States and Iran and ongoing restrictions on shipments through the Strait of Hormuz.

Brent crude climbed 1.2 per cent to $103.17 per barrel, while West Texas Intermediate rose 1.3 per cent to $94.16, after both benchmarks surged more than $3 in the previous session.

Markets continued to price in supply risks as diplomatic progress in the Gulf remained limited and tensions disrupted flows through the Strait, which previously handled around 20 per cent of global oil supplies. Iran’s seizure of vessels and continued US naval restrictions have heightened concerns over prolonged shipping disruptions.

The gains were further supported by US inventory data showing mixed signals, with crude stocks rising by 1.9 million barrels, while gasoline and distillate inventories recorded larger-than-expected declines, indicating firm fuel demand.

Meanwhile, US crude and petroleum product exports increased by 137,000 barrels per day to a record 12.88 million bpd, as buyers in Europe and Asia sought alternative supplies amid the ongoing tensions.