Oil jumps more than 2%, Brent surpasses $93

Arabic - Oil prices rose more than 2 percent on Thursday to reach their highest level in a month, amid concerns that the ongoing standoff between the United States and Iran will continue to disrupt supplies from the Middle East and reduce global availability.

October Brent crude futures rose $1.93, or 2.11 percent, to $93.55 per barrel, while September West Texas Intermediate (WTI) crude futures gained $1.73, or 2.02 percent, to $87.56 per barrel.

Hiroyuki Kikukawa, chief analyst at Nissan Securities Investment, said oil prices remained elevated as the market supported sporadic attacks in the Middle East, but lacked new momentum amid the absence of significant escalation.

He suggested that the market would maintain a gradual upward trend given the uncertainty surrounding ceasefire talks and disruptions affecting the UAE, Oman, and Iran.

Latest shipping data showed that traffic through the Strait of Hormuz on Wednesday remained unchanged from the previous day, as negotiations to end the war between the United States and Iran remained at an impasse.

Before the outbreak of hostilities on February 28, shipments passing through this waterway accounted for about one-fifth of global consumption, whereas current flows are significantly lower than pre-war levels.

The conflict has also affected refined fuel supplies, leading to declining inventories as available crude oil for refineries has decreased.

The U.S. Energy Information Administration reported that U.S. distillate inventories, including diesel and heating oil, fell for the third consecutive week last week.

However, crude oil inventories rose by 4.4 million barrels in the week ending August 14, compared to expectations of a decline of 600,000 barrels.