Singapore: Global oil prices extended their gains on Monday, with Brent crude rising above $90 per barrel, as concerns over potential supply disruptions through the Strait of Hormuz continued to support the market.
Brent crude futures climbed $2.09, or 2.37%, to $90.19 per barrel by 0241 GMT, reaching their highest level since June 11. The benchmark also recorded a 15.9% weekly gain last week, marking its strongest weekly performance since April.
Meanwhile, US West Texas Intermediate (WTI) crude rose $1.71, or 2.07%, to $84.20 per barrel, its highest level since June 12, after posting a 15.5% increase last week, the biggest weekly gain since early March.
Analysts at ING said oil prices remained under pressure from uncertainty surrounding crude supplies moving through the Strait of Hormuz, one of the world’s most important energy corridors.
The waterway handles nearly 20% of global oil trade, making it a critical route for international energy markets.
Recent disruptions have slowed commercial shipping through the Strait of Hormuz, raising concerns over the continuity of oil exports from the Gulf region.
According to LSEG data, only four vessels transited the strait on Sunday, compared with eight vessels the previous day. The data also showed that three oil product tankers and one Very Large Crude Carrier (VLCC) entered the strait since Friday to load crude oil.
Read More: Kerosene oil price rises in Pakistan
Separately, the United Kingdom Maritime Trade Operations (UKMTO) reported that a vessel caught fire northwest of Oman’s Kumzar early Monday. The cause of the incident was not immediately confirmed.
Market analysts said investors are closely monitoring developments that could affect crude exports from the Gulf.
Barclays analyst Amarpreet Singh said the coming days would provide a clearer picture of how current restrictions may impact regional oil exports and global supplies.
He added that oil markets could be underestimating the potential impact on global inventories, noting that crude stockpiles are currently at their lowest levels in the past five years.
The latest supply concerns have strengthened expectations of continued volatility in global energy markets, with traders closely watching shipping activity and export flows through the Strait of Hormuz.
