Crude oil futures continued their rally on Thursday, hitting their highest since late May driven by an escalating US-Iran conflict, tight US inventories, and a notable revival in Chinese buying.
Brent futures surged nearly 4% to $105.24 per barrel, while Dubai 1st Line (Platts) energy futures climber over 3% to $94.70/bbl.
Analysts at ING noted that prices had recently climbed past the $100 threshold due to elusive prospects for US-Iran de-escalation.
"The move follows US strikes on Iranian tankers near Kharg Island and Iran's warning of further retaliation, while China is reportedly set to resume crude purchases this month," Saxo Bank analysts said.
Demand-side dynamics are also shifting, as China, the world's largest crude importer steps up purchases after months of subdued activity, a factor analysts warn could amplify any future supply shocks.
Meanwhile, addressing the political fallout of high energy costs during a press gaggle at Joint Base Andrews, US President Donald Trump stated that crude prices above $100 could persist through the upcoming midterm elections.
"...right after the election, oil prices are going to be tumbling downward", Trump said, adding, "I think for gasoline we'll get them below $2 a gallon."
Data released Wednesday by the American Petroleum Institute indicated that US crude oil inventories fell by 300,000 barrels for the week ending September 4, extending a 2.6-million-barrel draw from the previous week.
The market is now closely eyeing the official US Energy Information Administration petroleum inventory report to gauge domestic supply resilience.
On the demand side, the Organization of the Petroleum Exporting Countries lowered its global oil demand growth forecasts for the fifth straight month for 2026, projecting demand to grow by 400,000 barrels per day year over year.