Oil Rises, Red Sea a Threat
Oil prices rose again on Wednesday (July 22nd) after US President Donald Trump dismissed the prospect of quick talks with Iran. The risk of global supply disruptions is also widening, not only from the Middle East but also from the Black Sea region.
Brent rose to around US$92 per barrel, recording gains for the fourth consecutive day. Meanwhile, West Texas Intermediate (WTI) moved above US$85 per barrel. Brent's September contract rose 1.1% to US$92.05, while WTI's September contract rose 1% to US$85.20 per barrel.
Trump said the US was not interested in opening talks with Iran anytime soon. He also renewed his threat to attack Pickaxe Mountain, a suspected Iranian nuclear site, and vowed to respond if the Houthis disrupted shipping in the Red Sea.
The US military said it had carried out its 11th consecutive day of attacks against Iran. The attacks were aimed at weakening Iran's ability to threaten commercial shipping in the Strait of Hormuz. Although the waterway remains open, commercial shipping traffic around Hormuz has fallen to its lowest level in three weeks.
The Houthi threat to Saudi Arabian maritime traffic is beginning to have an impact. Several tankers were seen temporarily stopping as they approached Yemeni waters, while other vessels carrying Saudi oil were turning back towards the Suez Canal. The Red Sea is a crucial route for Saudi Arabia to divert some of its oil exports and avoid risks in the Strait of Hormuz.
As a result, oil prices are likely to remain high as long as the risks of the US-Iran conflict, Houthi threats, and energy disruptions persist. If the Red Sea is completely closed or OECD supplies continue to dwindle, Brent could potentially reach US$100 per barrel. However, if there are signs of new negotiations, oil prices could begin to plateau. (asd)*
Source: Newsmaker.id
