Crude Oil Prices Rise as Geopolitical Risk, Supply Concerns Remain Despite Ceasefire

Crude oil prices saw gains on Thursday amid uncertainty about the ceasefire and whether the Strait of Hormuz will be reopened.Brent crude at last look rose 2.9% to US$97.51/barrel and West Texas Intermediate crude climbed 3.1% to $97.29/barrel. Despite the ceasefire, analysts said the geopolitical risk premium remains and the chances of the strait reopening any time soon appear low, Reuters said in a Thursday report."The futures market looks a bit broken," Vandana Hari, founder of oil market analysis provider Vanda Insights, was quoted as saying. Otherwise, "prices should have snapped right back to pre-ceasefire levels by now."Shippers said clarity was needed on the terms of the ceasefire before resuming transit through the Strait of Hormuz, according to the report."Even if shipments resume, the risks won't disappear overnight," Reuters quoted Susannah Streeter, chief investment strategist at Wealth Club, as saying. "Tankers may be forced to navigate mined waters and a heightened military presence, all of which will keep insurance premiums high and freight costs elevated."

-- Crude oil prices saw gains on Thursday amid uncertainty about the ceasefire and whether the Strait of Hormuz will be reopened.

Brent crude at last look rose 2.9% to US$97.51/barrel and West Texas Intermediate crude climbed 3.1% to $97.29/barrel. Despite the ceasefire, analysts said the geopolitical risk premium remains and the chances of the strait reopening any time soon appear low, Reuters said in a Thursday report.

"The futures market looks a bit broken," Vandana Hari, founder of oil market analysis provider Vanda Insights, was quoted as saying. Otherwise, "prices should have snapped right back to pre-ceasefire levels by now."

Shippers said clarity was needed on the terms of the ceasefire before resuming transit through the Strait of Hormuz, according to the report.

"Even if shipments resume, the risks won't disappear overnight," Reuters quoted Susannah Streeter, chief investment strategist at Wealth Club, as saying. "Tankers may be forced to navigate mined waters and a heightened military presence, all of which will keep insurance premiums high and freight costs elevated."