Investors watch US stockpile data for signs of whether oil’s rally can continue.
Global oil prices extended their gains in early Asian trading on Wednesday (July 22), with Brent crude remaining above $91 a barrel and Murban crude recording the strongest increase of the day. Investors continued to assess rising military tensions in the Middle East and fresh threats to key energy shipping routes.
At 7:26 am Tokyo time, market data showed:
Market data at the time showed:
- Brent crude: $91.01 per barrel, up $1.79 (+2.01%)
- WTI crude: $84.63 per barrel, up 29 cents (+0.34%)
- Murban crude: $85.77 per barrel, up $4.01 (+4.90%)
- Natural gas: $2.881, up 0.56%
The latest surge in oil prices comes after a significant escalation in the US-Iran conflict, raising concerns about possible disruptions to crude shipments through the Strait of Hormuz, a critical route for global energy trade.
Around one-fifth of the world’s seaborne oil supplies typically pass through the narrow waterway, making any threat to its security a major concern for global markets.
Brent crude settled on Tuesday at its highest level in about five weeks after US strikes on Iranian targets and subsequent Iranian retaliation heightened concerns over potential disruptions to global oil supplies.
Pressure from Houthi threats
Additional support for oil prices came after Yemen’s Iran-aligned Houthi movement threatened a naval blockade targeting Saudi shipping, prompting some tanker operators to consider alternative routes to avoid potential risks.
Murban crude, a key benchmark for many Asian Middle East oil imports and produced in Abu Dhabi, outperformed both Brent and WTI in early trading, reflecting growing concerns about potential risks to Gulf energy supplies.
Markets are also focused on the release of US crude inventory data later on Wednesday. Analysts are expecting another weekly drop in stockpiles, which could provide additional momentum for oil prices if the decline is confirmed.
However, despite the recent rally, oil prices remain well below the highs seen earlier this year during the peak of the Iran conflict. Brent crude had briefly surged above $120 a barrel before easing as ceasefire efforts and releases from strategic petroleum reserves helped reduce immediate concerns over supply shortages.
Analysts say geopolitical risk premiums are making a comeback as traders evaluate whether the latest military developments could disrupt commercial shipping through the Strait of Hormuz and the Red Sea. Any sustained disruption could tighten global crude supplies at a time when demand is elevated during the peak Northern Hemisphere summer driving season.
