Oil jumps over 1% amid renewed supply concerns

Oil drilling rigs

Oil edged up more than 1% today, Aug. 4, recovering some of the losses of the previous session, amid escalating concerns about risks surrounding Middle East supplies.

Prices slumped yesterday after US President Donald Trump suspended new military strikes against Iran, pending the outcome of ongoing talks to end the conflict and resolve the dispute over the management of the vital Strait of Hormuz, Reuters reported.

However, Iranian Foreign Ministry spokesman Esmaeil Baghaei denied the news, stressing that there were no scheduled negotiations or meetings with the American side, which renewed market fears of a possible escalation of field tensions again.

Barclays analysts noted that net exports of crude oil and refined products through the Strait of Hormuz rose to an average of 4.2 million barrels per day during the week ending July 31, compared to about 3.2 million barrels per day in the previous week.

The US crude oil inventory report from the American Petroleum Institute is expected later today, before the official data is released by the US Energy Information Administration on Aug. 5.

*At 07:59 am Makkah time.