Oil Closes Higher, Posts Strongest Month Since March Amid Hormuz Tensions
Brent crude rose at settlement to $109.86 per barrel, up 3.72% on Friday, completing its strongest month since March, as the risk premium remained elevated due to Hormuz disruptions.
Brent crude rose at settlement to $109.86 per barrel, up 3.72% on Friday, completing its strongest month since March, Energy Now reported.
Traders attribute this rally to supply disruptions through the Strait of Hormuz, along with attacks on Saudi-linked tankers, which kept the risk premium elevated.
The continued disruption of one of the world's most critical oil chokepoints keeps the market on edge, as traders monitor any signs of the strait reopening or shifts in shipping routes.
Traders believe that the persistence of the premium depends on the duration of the closure and the frequency of attacks, while attention turns to supply and inventory data in the coming days.
What Do These Terms Mean?
Brent Crude: One of the world's major benchmark oils, used to price many crude cargoes and serving as a gauge for energy price trends.
Settlement: The official price set at the close of a trading session, used as a reference to settle contracts and trades.
Risk Premium: An increase in oil prices paid by buyers against the potential for supply disruptions or security risks to shipments.
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