Khaberni - Oil prices rose on Wednesday, continuing the upward trend that started several days ago, amidst reports that the United States will extend its control over Iranian ports, potentially prolonging the disruption of supplies from the Middle East, which is one of the most important production regions.
The Wall Street Journal reported late Tuesday quoting U.S. officials that President Donald Trump has instructed his aides to prepare for a prolonged blockade on Iran.
The report states that Trump prefers to continue pressuring Iran's economy and oil exports by blocking shipments to and from its ports.
Brent crude futures for June delivery rose 52 cents or 0.47% to $111.78 per barrel by 01:54 GMT, marking an increase for the eighth consecutive day. The June contracts expire on Thursday, while the more active July contracts were at $104.84, up 0.4%.
West Texas Intermediate crude futures for June delivery rose 57 cents or 0.57% to $100.50 per barrel after rising 3.7% in the previous session, marking an increase in seven of the last eight sessions.
Yang An, an analyst at Haitong Futures, said, "The recent rise in oil prices has been driven by the blockade of the strait. If Trump is prepared to extend the blockade, supply disruptions will worsen and continue to drive oil prices up."
The closure of the Strait of Hormuz continues to lead to an increase in the draw on global stocks, as market sources reported late on Tuesday that data from the American Petroleum Institute indicates a decrease in U.S. crude inventories.
The sources stated that crude inventories fell by 1.79 million barrels in the week ending on April 24. Gasoline inventories decreased by 8.47 million barrels, while distillate stockpiles fell by 2.60 million barrels.
