Brent strengthened above $91 per barrel on Wednesday, hovering near six-week highs as supply risks intensified across several major export routes even beyond the Middle East. President Donald Trump dismissed the likelihood of imminent talks with Iran while warning of additional strikes and pledging retaliation if Tehran-backed Houthi rebels in Yemen disrupted shipping through the Red Sea. The Red Sea has become a vital export corridor for Saudi Arabia during the conflict, enabling the kingdom to reroute part of its crude exports through pipelines and reduce reliance on the Strait of Hormuz. Meanwhile, a Kuwaiti tanker carrying oil products was struck in Hormuz, underscoring persistent threats to maritime traffic. Outside the region, traders are also monitoring a series of attacks on the Caspian Pipeline Consortium terminal along Russia’s Black Sea coast, a key export hub for most of Kazakhstan’s crude.

Brent Edges Higher on US-Iran Uncertainty

Crude oil climbed toward $85 per barrel on Wednesday, hovering near six-week highs as supply risks intensified across several major export routes even beyond the Middle East. President Donald Trump dismissed the likelihood of imminent talks with Iran while warning of additional strikes and pledging retaliation if Tehran-backed Houthi rebels in Yemen disrupted shipping through the Red Sea. The Red Sea has become a vital export corridor for Saudi Arabia during the conflict, enabling the kingdom to reroute part of its crude exports through pipelines and reduce reliance on the Strait of Hormuz. Meanwhile, a Kuwaiti tanker carrying oil products was struck in Hormuz, underscoring persistent threats to maritime traffic. Outside the region, traders are also monitoring a series of attacks on the Caspian Pipeline Consortium terminal along Russia’s Black Sea coast, a key export hub for most of Kazakhstan’s crude.

Oil Edges Higher on US-Iran Uncertainty

US crude oil inventories posted an unexpected build of 2.603 million barrels in the week ending July 17, according to API data, compared with expectations for a 1.5 million-barrel draw, after a 564,000-barrel decline in the previous week. Despite the increase, commercial crude inventories excluding the Strategic Petroleum Reserve (SPR) have fallen by more than 57 million barrels over the past 13 weeks and remain about 7 million barrels lower year-to-date. The SPR declined by another 5.1 million barrels to 316.5 million, the lowest level in more than 43 years. Meanwhile, Cushing inventories fell by 737,000 barrels, gasoline stocks dropped by 1.379 million barrels, and distillate inventories rose by 1.759 million barrels. US crude production edged up to 13.861 million bpd, while renewed US-Iran tensions and continued shipping disruptions through the Strait of Hormuz kept oil prices supported.

US Crude Inventories Unexpectedly Rise

The NZX 50 climbed 45 points, or 0.3%, to 13,701 in Wednesday morning trading, erasing losses from the previous session, tracking a rise on Wall Street overnight buoyed by a rebound in chip stocks. Traders shrugged off Wednesday's data, which showed that New Zealand's inflation rate accelerated to the highest level since Q4 2023. However, persistently high oil prices capped the gains as inflation concerns fueled expectations of further interest rate hikes, while RBNZ Chief Economist Paul Conway recently warned that sticky inflation could prompt further monetary policy tightening. Gains in materials, consumer discretionary, and communication services stocks mainly drove the broader index. A2 Milk rose 1.4%, AFT Fisher & Paykel climbed 0.9%, Auckland International Airport advanced 0.5%, and Ebos Group gained 0.5%.

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Brent Edges Higher on US-Iran Uncertainty

Oil Edges Higher on US-Iran Uncertainty

US Crude Inventories Unexpectedly Rise

NZX 50 Rises, Tracking Wall Street Gains