Crude Oil Prices: Brent, WTI Rise for Fifth Day

Crude oil prices extended their rally Thursday as persistent Middle East supply concerns outweighed an unexpected increase in U.S. inventories. Brent crude traded near $92 a barrel, while WTI also moved higher as traders weighed disruption around the Strait of Hormuz against signs of rising U.S. crude supply. October Brent futures rose 26 cents, or 0.3%, to $91.87 a barrel by 4:39 a.m. GMT on Aug. 20. September West Texas Intermediate crude gained 17 cents to $86, while the more actively traded October WTI contract was at $89.91. Oil was heading higher for a fifth straight session after both benchmarks reached their highest levels since July 24 on Wednesday. Why Are Crude Oil Prices Rising Today? Geopolitical risk remains the strongest driver behind the latest oil rally. Shipping through the Strait of Hormuz remains well below prewar levels as the U.S.-Iran conflict continues without a clear diplomatic breakthrough. Washington and Tehran have also offered conflicting accounts over whether the waterway is open. The strait is critical to global energy markets because, before the conflict, oil flows through Hormuz were equivalent to roughly one-fifth of global consumption. The United Arab Emirates has also suspended financial and economic dealings with Iran, adding to uncertainty across the region. Those risks have kept buyers active even after U.S. inventory data delivered a bearish surprise. U.S. Crude Inventories Jump 4.4 Million Barrels U.S. crude stockpiles unexpectedly increased by 4.4 million barrels in the latest reporting week, according to data cited by Reuters. Normally, a sizable inventory build can pressure crude prices because it suggests supply is running ahead of demand. This time, however, geopolitical concerns have had a stronger influence on prices. U.S. distillate inventories also declined for a third consecutive week, keeping attention on tight supplies of refined fuels such as diesel. The combination creates a divided oil market: crude inventories are rising in the U.S., but Middle East supply and shipping risks continue to support prices. Brent Crude Chart Puts $95 Resistance in Focus A daily Brent crude chart shared by The Great Martis shows oil recovering above the $90 area after rebounding from its July low. The chart identifies what the trader describes as a flat-top broadening pattern and places 95 as the first important upside hurdle. Brent Crude Broadening Pattern. Source: @great_martis Martis said the pattern could eventually point toward $140 or higher if it develops according to its textbook structure. That level should be viewed as a conditional technical scenario rather than a confirmed crude oil price forecast. Before such a move becomes relevant, Brent would need to clear $95 and sustain its recovery. The chart then shows a much larger resistance area around $114-$115, where previous advances stalled. That makes $95 the more immediate level for traders.