Oil closed slightly higher this Wednesday, 12th, amid the halt in negotiations between the United States and Iran. Investors continue to ponder the impasse in Hormuz, which suggests tighter supply, with the prospect of lower demand for the commodity given the slowdown in global growth.
Oil closes slightly higher with tensions in the Middle East and concerns about demand
Oil closed slightly higher this Wednesday, 12th, amid the halt in negotiations between the United States and Iran. Investors continue to ponder the impasse in Hormuz, which suggests tighter supply, with the prospect of lower demand for the...
Brent oil for October, traded on London's Intercontinental Exchange (ICE), closed up 0.08% (US$0.07), at US$88.98 per barrel. Reports this Wednesday from the Organization of the Petroleum Exporting Countries (Opec) and the International Energy Agency (IEA) put pressure on the energy commodity, despite tensions in the Middle East.
- OPEC lowered its 2026 global oil demand and global growth forecast, while the IEA said the impasse in the Strait of Hormuz deepens the decline in oil demand.
- The drop in oil contracts was, however, mitigated by tensions in the Middle East.
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Traded on the New York Mercantile Exchange (Nymex), WTI oil for September closed up 0.08% (US$0.07), at US$83.27 per barrel.
Brent oil for October, traded on London's Intercontinental Exchange (ICE), closed up 0.08% (US$0.07), at US$88.98 per barrel.
Reports this Wednesday from the Organization of the Petroleum Exporting Countries (Opec) and the International Energy Agency (IEA) put pressure on the energy commodity, despite tensions in the Middle East.
OPEC lowered its 2026 global oil demand and global growth forecast, while the IEA said the impasse in the Strait of Hormuz deepens the decline in oil demand.
The drop in oil contracts was, however, mitigated by tensions in the Middle East. US President Donald Trump accused Tehran of trying to "escape" the conflict and making empty threats against Washington. Iran reiterated that there is no talk with the Americans about a ceasefire.
For Avenue's investment director, Marcela Rocha, the shock in oil prices has been softened by some buffers, such as the use of oil reserves by countries, government measures to limit the pass-through of prices to consumers and industry and less dependence on oil.
In Ukraine, President Volodymyr Zelensky said today that an attack by Kiev damaged a Russian naval base in Novorossiysk.
The region was the target of Ukrainian attacks even after the Vice President of the United States, J.D. Vance, asked Kiev to cease the offensive against the location. According to Reuters, the Orsknefteorgsintez oil refinery in Russia ceased processing on Tuesday after a fire that followed a Ukrainian drone strike.
In parallel, weekly U.S. oil inventories rose by 17.4 million barrels last week, the U.S. Department of Energy said, against market expectations for a small draw.
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