On Wednesday, Brent crude oil exceeded $70 and updated its 7-month high at around $ 71.28 per barrel. Growth of quotations was caused by the escalation of the conflict in the Middle East. Iran attacked US military bases in Iraq in response to the assassination of Iranian general Qassem Soleimani. After 16 hours, US President Donald Trump issued a statement threatening new sanctions, but said nothing about the armed conflict escalation. Against the background of a decrease in passions in this matter, oil fell by almost 5% and is currently trading near $65.0.
However, tensions in the region are still elevated, which directly affected logistics. The Financial Times reports that Bahri - Saudi Arabia national shipping company, which in particular is involved in the transportation of oil, has suspended passage through the Strait of Hormuz. Most of all, the market is nervous about disruptions in the supply of oil products.
Also, on Wednesday, EIA published Brent crude oil inventories, indicating an increase in oil reserves by 1.16 million barrels, while the market was counting on a reduction in reserves by 3.57 million barrels. However, the news had a minimal impact on quotes due to Iranian crisis.