FX.co ★ Oil Prices Slightly Up

Crude oil edged higher to around $91 a barrel on Thursday, trading near a six-week peak as investors continued to track developments in the Middle East, including ongoing strikes and their potential impact on oil flows through the Strait of Hormuz. Iran claimed overnight strikes on US bases in the region, while Israel signaled it was ready to resume large-scale military operations if necessary. At the same time, US President Trump said on Wednesday that the renewed hostilities in the Middle East would not last “too long.”

Despite the heightened tensions, there were indications that crude supplies were still reaching the market. Six commodity tankers passed through the Strait of Hormuz on Wednesday, down from 11 on Tuesday and below the 10-day average of nearly 13, according to Reuters. Meanwhile, Iraq’s oil exports rose in August and are expected to increase further in September. In contrast, Russia plans to start cutting oil production this year, according to Deputy Prime Minister Alexander Novak.