Oil prices inched higher as traffic through the Strait of Hormuz remains nearly standstill. Supply disruptions in Saudi Arabia have also raised production concerns.
Oil gained amid ongoing concerns over the Strait of Hormuz, a key waterway through which one-fifth of the world's oil is transported.
Top Trump economic advisor Kevin Hassett said even one oil tanker passing through the Strait of Hormuz would provide a "huge chunk of what's missing." But traffic through the key shipping route remains tightly throttled, despite the U.S. and Iran reaching a fragile ceasefire that ostensibly involves reopening the strait.
As investors have sought new ways to take advantage of volatile energy prices, interest leveraged or inverse ETFs are taking off.
Iran is requiring ships to obtain its permission to pass through the Strait of Hormuz, the CEO of the United Arab Emirates' state-owned oil company said. "The Strait of Hormuz is not open," Sultan Ahmed Al Jaber said.
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Oil's rally has been a boon for family offices who invested in oil after traditional investors stepped away from the sector in part due to ESG pressures. While many investment firms of the ultra-wealthy are environmentally conscious, family offices are not subject to shareholder mandates to divest from oil and gas.
Asia faces oil shock pressure, but stronger reserves reduce crisis risk. Economists said this was a supply shock, not a financial crisis like the one in 1997.
Traders wary that traffic through the Strait of Hormuz is still restricted.
Goldman Sachs is warning of a painful gas squeeze as much of Qatar's supply remains offline. Qatar's liquefied natural gas infrastructure is severely damaged.
The price for actual Brent oil cargos came in above $120 per barrel on Wednesday, nearly $30 more than the June futures contract. The spot price shows that oil supplies will stay tight for some time, even if the ceasefire agreement holds.