Oil prices went up further on Wednesday, extending a multi-day rally, as the Iran and US blockades of the Strait of Hormuz continued.
Oil prices edged lower in early Tuesday trading as markets pinned cautious hopes on a revival of US-Iran diplomacy, even as tensions around the Strait of Hormuz underscored the fragility of the situation ahead of the expiry of a two-week ceasefire.
Oil prices declined from an early trade of over $119 a barrel, a peak since 2022, caused by Saudi Arabia and other OPEC members cutting supplies due to disruptions from the expanding US-Israeli war with Iran.
Oil prices edged lower on Wednesday after surging in the previous session, as traders weighed fresh US inventory data and signs of possible export relief from northern Iraq against continuing concerns over Middle East supply disruptions.
US Energy Information Administration (EIA) estimates crude oil inventories in China increased by about 900,000 barrels per day (b/d) between January and August this year, essentially acting as a source of demand by removing barrels from the global markets.
