Oil prices moved above USD 90 a barrel on September 1, as renewed US-Iran tensions increased concerns over supply disruptions in the Middle East.
Brent crude rose 55 cents, or 0.61%, to USD 91.04 a barrel around 7:30 am IST. US West Texas Intermediate crude gained 79 cents, or 0.92%, to USD 86.55 a barrel.
The latest gains followed a sharp rise in the previous session. Brent climbed 2.7% on Monday after touching its strongest level since August 25. WTI settled 2.8% higher after reaching its highest level since August 21.
Oil markets are closely watching the Strait of Hormuz. Shipping data from Kpler showed only five visible commodity vessels a day using the waterway over the weekend.
The strait carried around one-fifth of global oil supplies before the conflict began in late February. Iran shut the waterway after US and Israeli attacks on February 28.
Efforts by Qatar and Oman to help reopen the passage have so far failed to produce a deal. Shipping risks were highlighted again on Tuesday when the UK Maritime Trade Operations agency said a tanker reported being hit by three projectiles while leaving the strait. No casualties or environmental damage were reported in the incident.
The market is also watching developments in Venezuela as the US seeks to rebuild its Strategic Petroleum Reserve. The reserve fell by about 3.1 million barrels last week to 286.6 million barrels, close to a 44-year low.
Indian energy companies are also preparing projects in Venezuela. ONGC, Chevron, GE Vernova, Eni and Colombia's GeoPark are expected to finalise agreements after months of negotiations, according to sources cited in the report.
Analysts polled by Reuters in August expect oil prices to stay above USD 80 a barrel through 2026 if shipping disruptions continue.
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