Oil Rises Again, Trump's Threats and US Stockpiles Catalyst
Oil prices continued their rise on Wednesday (June 10th) after US President Donald Trump warned that Washington would strike Iran again soon. The statement reinforced concerns that the US-Iran conflict is far from over and that the Strait of Hormuz will not return to normal anytime soon.
WTI rose 2.1% to close at US$90.03/barrel in New York, after earlier weakening. Brent for August rose 1.8% to US$93.10/barrel. This increase indicates the market has re-introduced a geopolitical risk premium after Trump said the US would "hit Iran hard again today," without specifying the target of the attack.
Trump's comments are significant because they differ from his previous tone, which often seeks to keep oil prices low. This time, the statement actually heightened concerns that military escalation could continue. Iran also stated that it would stand firm in the face of any threats, making the chances of a short-term compromise seem more difficult.
The latest tensions arose after US forces attacked several locations near the Strait of Hormuz. Iran then reportedly launched a drone attack on the US Fifth Fleet in Bahrain in response. Furthermore, US Central Command announced it had disabled the Palau-flagged oil tanker, M/T Settebello, in the Gulf of Oman. This series of incidents has increased the risks to the region's key energy routes.
From a fundamental perspective, oil prices were also supported by US stockpile data. US crude inventories fell by 7.2 million barrels last week, while stocks at Cushing, Oklahoma, also declined. National inventories remain near a four-month low, reflecting tight global supply as buyers seek to replace lost barrels from the Persian Gulf.
However, the market has not yet fully interpreted this situation as a full-blown supply crisis. Oil prices are still down more than a quarter from their peak in late April, helped by a decline in Chinese imports to multi-year levels, the release of emergency reserves, and some oil flows still making it through Hormuz. This means that the physical market currently appears quite capable of absorbing disruptions, although the risks remain high. (Arl)*
Source: Newsmaker.id
