Oil climbs on fresh vessel attacks, Oman spill

Brent crude futures eased 0.94 per cent to $88.80 a barrel on Thursday, according to market data cited by Mettis Global, even as fresh attacks on ships in the Red Sea and Gulf of Oman stoked supply worries. West Texas Intermediate dropped $0.98, or 1.17 per cent, to $82.95 a barrel. A spill off Oman's coast has grown since a June 30 grounding of a tanker that held about 800,000 barrels of Russian crude. CNBC reported that the leak has reached the coastline and spread to an area close to a protected nature reserve home to several marine and bird species.

The International Energy Agency trimmed its forecast for the expansion in worldwide oil demand, blaming worsening disruption tied to the Strait of Hormuz shutdown. According to the agency, renewed hostilities and shipping problems are slowing efforts to restore supply, with July output roughly 6.3 million barrels per day beneath the year-earlier figure. Deadly strikes on ships across the Red Sea and Gulf of Oman have deepened doubts about the safety of key energy trade routes.

The report also notes continuing uncertainty over reopening the Strait of Hormuz, and says setbacks in diplomatic efforts would add to the risks facing maritime traffic.