Oil prices rise on Thursday

Oil prices edged higher on Thursday as investors remained cautious over the outcome of Iran-Oman talks on restoring shipping through the Strait of Hormuz, while reported attacks on Saudi oil tankers in the Red Sea and Gulf of Aden added to supply concerns.

Brent crude futures rose 48 cents, or 0.60 per cent, to $79.93 a barrel by 0755 GMT, while US West Texas Intermediate crude gained 29 cents, or 0.39 per cent, to $75.51 a barrel.

Iran said it had reached an understanding with Oman on the geographic coordinates of a shipping route through the Strait of Hormuz, with a joint announcement being finalised if no third parties intervened. Reuters also reported that a proposed agreement would give Tehran control over ships entering the Gulf through the waterway.

Analysts said uncertainty over the durability of any agreement continued to support prices, while Gulf crude and condensate exports remained around 40 per cent below pre-conflict levels in July.

Supply risks were further heightened after Yemen’s Iran-aligned Houthis claimed missile attacks on two Saudi oil tankers in the Red Sea and Gulf of Aden, although Saudi Arabia has not confirmed the incidents.

Separately, Saudi Arabia lowered the September official selling price of its Arab Light crude to Asia by setting it at $2 a barrel below the Oman/Dubai average, while Ukraine said it had struck two oil refineries inside Russia.

Attribution: Reuters