Explosions in the Strait of Hormuz affected oil prices: Brent exceeded 92 dollars

On November 11, oil prices rose on the world market. Brent crude futures gained 0.6 percent, reaching $92.01 per barrel. The price of WTI crude rose 0.2 percent to $86.20. This was reported by Reuters reported.

 

The rise in oil prices followed a drop to its lowest level in the past two months a day earlier.

 

According to the Washington Institute for Near East Policy, attacks on ships in the Strait of Hormuz continue. In October, 37 attacks were recorded. This is the highest figure observed within a single month since the war in the Middle East began.

 

On November 10, the United Kingdom Maritime Trade Operations (UKMTO) reported an attack on one of the tankers northeast of the city of Lima in Oman. On the same day, the naval forces of Iran's Islamic Revolutionary Guard Corps announced that two tankers had burned as a result of explosions from sea mines. The authority stated that the tankers were moving through the strait along an unauthorized route.

 

According to Jun Gon, a senior analyst at Sparta Commodities, expectations of falling prices in the market are strengthening due to the completion of the midterm elections in the United States and increasing volumes of oil supplies from the Middle East. In his opinion, one of the main factors influencing oil prices is Iran's readiness to yield to U.S. demands in order to achieve a diplomatic agreement.

 

According to LSEG Oil Research analysts, even if the parties reach an agreement, the recovery of oil transportation volumes through the Strait of Hormuz will depend on demining, insurance costs, and the readiness of shipowners to assume the risk.

 

Recall that on November 10, after U.S. President Donald Trump stated that the likelihood of the country striking Iran was very low, oil prices fell below $90 per barrel for the first time since August.