Crude oil was little changed on Wednesday and holding on to gains made over the past seven days. Traders kept a bid under oil as deadly attacks on vessels in the Red Sea and Gulf of Oman heightened concerns over global shipping routes, even as diplomats signalled some progress toward reopening the Strait of Hormuz.
Pakistan's defence minister suggested Washington and Tehran were nearing agreement over the Strait, with parallel talks between Iran and Oman also said to be advancing. But US-Iran negotiations hit fresh obstacles, with Tehran demanding concessions including the release of frozen Iranian assets and a US withdrawal from regional conflicts. President Trump instead called for Iran to pay reparations.
Yesterday Iranian-backed Houthi rebels killed six people in an attack on a cargo ship in the Bab el-Mandeb Strait, the first reported fatalities from Red Sea shipping attacks in more than a year. Hours later, US forces said they had fired on a container ship attempting to break the navy's blockade of Iranian ports in the Gulf of Oman. A look at front-month WTI shows that the contract is testing resistance. If it breaks above here significantly, and on a protracted basis, then that would put the $100 per barrel target back in sight.
Source: TN Trader
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