Oil prices rose on Wednesday, continuing the rise that began several days ago, amid reports that the United States will extend its control over Iranian ports, which may prolong the disruption of supplies from the Middle East, which is one of the most important production regions.
Late Tuesday, the Wall Street Journal quoted US officials as saying that President Donald Trump had instructed his aides to prepare for a prolonged siege of Iran.
The report said that Trump prefers to continue to put pressure on Iran’s economy and its oil exports by preventing shipping to and from its ports.
Brent crude futures for June delivery rose 52 cents, or 0.47%, to $111.78 per barrel by 01:54 GMT, rising for the eighth day in a row. June contracts expire on Thursday, while the most active July contracts recorded $104.84, an increase of 0.4%.
US West Texas Intermediate crude futures for June delivery rose 57 cents, or 0.57%, to $100.50 a barrel after rising 3.7% in the previous session, recording an increase in seven of the last eight sessions.
“The recent rise in oil prices was driven by the blockade of the Strait. If Trump is willing to extend the blockade, supply disruptions will worsen and continue to push oil prices higher,” said Yang An, an analyst at Haitong Futures.
The closure of the Strait of Hormuz continues to lead to increased withdrawals from global inventories, as market sources reported late on Tuesday that American Petroleum Institute data indicated a decline in US crude inventories.
The sources said that crude stocks fell by 1.79 million barrels in the week ending April 24. Gasoline stocks fell by 8.47 million barrels, while distillate stocks fell by 2.60 million barrels.
