Oil prices hit 3-week high on Hormuz shipping risks

Oil prices climbed on Wednesday to a level not seen in roughly three weeks, according to Mettis Global, as uncertainty over vessel traffic through the Strait of Hormuz and continuing supply disruptions kept markets on edge. Brent crude futures were up 0.89 per cent at $91.91 per barrel, while West Texas Intermediate gained $0.91, or 1.08 per cent, to $84.97.

Shipping through the Strait, which previously carried about a fifth of world oil and liquefied natural gas, has run far below normal as several shipowners steer clear amid security worries. U.S. President Donald Trump said on Tuesday that no talks with Iran were under way and that the waterway was open, whereas Tehran insisted the passage remained shut. The temporary ceasefire lapsed on Monday, though no fresh strikes were reported on Tuesday.

Iraq's cabinet cleared a framework letting crude move out through dedicated overseas and domestic firms along several routes, running for three months from September 1. American crude and distillate stocks fell last week according to American Petroleum Institute figures cited by market sources, while gasoline inventories rose. Reuters analysts forecast a drop of about 600,000 barrels in U.S. crude stocks for the week to August 14, with official Energy Information Administration numbers due later on Wednesday.