Brent at just over $91 a barrel is seen as undervalued
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narvo vexar
Crude oil futures traded higher on Wednesday morning as US forces continued their attacks on Iranian targets for the 11th consecutive day.At 9.31 am on Wednesday, September Brent oil futures were at $92.19, up by 1.30 per cent, and September crude oil futures on WTI (West Texas Intermediate) were at $85.35, up by 1.20 per cent. August crude oil futures were trading at ₹8,233 on the Multi Commodity Exchange (MCX) during the initial hour of trading on Wednesday against the previous close of ₹8150, up by 1.02 per cent, and September futures were trading at ₹8028 against the previous close of ₹7983, up by 0.56 per cent.A statement by the US Central Command said that its forces successfully completed the 11th consecutive evening of strikes against Iran at 8.15 pm ET on July 21.It targeted Iranian military operations centres, maritime capabilities, aircraft hangars, drone storage facilities, and military logistics infrastructure to further degrade Iran’s ability to threaten commercial shipping in the Strait of Hormuz.Over the past three months, Iran has attacked more than 30 commercial vessels transiting the international waterway vital for regional and global trade. The unwarranted attacks have endangered hundreds of innocent mariners and undermined freedom of navigation, it said.“Despite the Iranian aggression, the Strait of Hormuz remains open for commercial vessel transit,” the statement said.In their Commodities Feed for Wednesday, Warren Patterson, Head of Commodities Strategy of ING Think, and Ewa Manthey, Commodities Strategist, said hopes of a temporary ceasefire between the US and Iran had faded after US President Donald Trump ruled out the prospect of immediate talks. Meanwhile, the Houthis’ announced maritime blockade on Saudi Arabia has shippers nervous, with several tankers moving to avoid the Bab el-Mandeb Strait. This would force tankers to enter and exit the Red Sea via the Suez Canal, adding significant time and expense to voyages to Asia, they said.Mentioning that the disruptions facing the market don’t end in West Asia, they said Russia’s CPC terminal has stopped receiving oil from Kazakhstan in the Black Sea, with loadings suspended following ongoing attacks on tankers. The longer the suspension drags on, the greater the likelihood that Kazakhstan will be forced to curb upstream production. Volumes shipped from the CPC terminal are significant, with around 1.7 million barrels per day loaded in June, they said.“Factoring in the renewed disruptions from the Persian Gulf, risks to Saudi crude exports from the Red Sea, and developments in the Black Sea, one may argue that Brent at just over $91 a barrel is undervalued. Particularly if these disruptions persist into August,” they added.Published on July 22, 2026
