JAKARTA - World oil prices rose more than 1 percent after US President Donald Trump said his patience with Iran was running out. Citing an Arab News report, Friday, May 15, the market is also still overshadowed by concerns over attacks and ship seizures around the Strait of Hormuz.
Brent crude prices rose 1.32 dollars or 1.25 percent to 107.04 dollars per barrel at 07.25 Saudi Arabian time. Meanwhile, West Texas Intermediate (WTI) crude oil rose 1.33 dollars or 1.31 percent to 102.50 dollars per barrel.
In the past week, Brent has strengthened by almost 6 percent. WTI even jumped more than 7 percent. The market is moving up amid uncertainty over a ceasefire in the Iran conflict.
"I'm not going to be much more patient," Trump said in an interview with Fox News. "They should make a deal."
US Trade Representative Jamieson Greer said China was pragmatic about Iran. According to him, China has an interest in keeping the Strait of Hormuz open because the route is very important for world energy trade.
Trump and Chinese President Xi Jinping are scheduled to meet on Friday to wrap up a two-day state visit that has also been marked by a variety of business deals.
Founder of Vanda Insights, Vandana Hari, said the market was again focusing on the deadlock in the Iran conflict and disruptions in the Strait of Hormuz after the Beijing meeting did not produce any new breakthroughs.
"With the Beijing Summit not producing a breakthrough on Iran, market focus is back on the impasse and the disrupted Strait of Hormuz, with a small risk of a new military escalation," he said.
Trump also said China wants to buy oil from the United States.
Tensions around the Strait of Hormuz itself have not eased. A ship was reportedly seized by Iranian personnel off the coast of the United Arab Emirates and then directed to Iranian waters on Thursday.
A day earlier, an Indian cargo ship carrying livestock from Africa to the UAE sank in Omani waters.
The White House said Trump and Xi agreed the Strait of Hormuz shipping lanes must remain open.
The Iranian Revolutionary Guards said 30 ships had crossed the Strait of Hormuz since Wednesday night. The number is still far below normal pre-war conditions of around 140 ships per day, although it shows an increase in activity.
Haitong Futures analyst Yang An said the main factor behind the rise in oil prices was still tight supply.
"Oil prices fluctuated several times yesterday, but still closed near the daily high," he said.
According to Yang, ships that have returned to cross the Strait of Hormuz have slightly eased market concerns. However, it is not enough to change the trend of rising caused by tight global oil supplies.
The English, Chinese, Japanese, Arabic, and French versions are automatically generated by the AI. So there may still be inaccuracies in translating, please always see Indonesian as our main language. (system supported by DigitalSiber.id)
