KEY POINTS
- Brent rose 3 cents to $98.35 a barrel after a 16% weekly slide.
- Trump indicated further strikes on Iran are unlikely while talks continue.
- Tanker fires near Hormuz and a Houthi attack in Riyadh kept risks in view.
Oil prices held steady Monday after President Donald Trump indicated he was unlikely to order further strikes on Iran while negotiations continue, Business Recorder reported.
Brent crude rose 3 cents to $98.35 a barrel by 4:27 a.m. GMT, while U.S. West Texas Intermediate gained 0.5% to $91.30.
The calm followed a 16% slide in Brent last week, its biggest weekly decline since the COVID-19 pandemic began.
Oil prices still face Hormuz risks
Still, shipping incidents in and around the Strait of Hormuz kept supply risks in focus despite hopes for diplomacy. Iran said five tankers and a tugboat caught fire.
Separately, Yemen’s Houthi rebels claimed an attack on Saudi Aramco offices in Riyadh. The strike caused property damage but no reported injuries.
JPMorgan sees a growing surplus
Meanwhile, JPMorgan projected that global oil supply would exceed demand by 1.1 million barrels a day in September and 1.4 million barrels a day in October. The bank cited recovering Middle Eastern flows, higher output elsewhere and soft demand.
