2 weeks ago
Crude Futures Rise Fourth Session Amid Hormuz Supply Fears
Oil prices rose for the fourth day in a row.
Traders are worried that fighting and shipping problems could make it harder to move oil.
A merchant ship was hit by an unknown projectile in the Strait of Hormuz, and a crew member became a casualty.
The United States and Iran did not reach an agreement after a 60-day ceasefire period ended.
Iran has listed conditions for reopening the waterway.
Saudi Aramco has used ship-to-ship transfers, which are slower and more expensive.
Gulf diesel shipments were down about 80% from last year, while crude shipments were down 48%.
These concerns made traders pay more for oil.
MCX September crude futures rose Rs 57, or nearly 1%, to Rs 8,145 per barrel.
Brent October futures gained nearly 1% to USD 91.65 per barrel, while October WTI rose 1% to USD 85.65.
A merchant vessel was struck by an unknown projectile while transiting the Strait of Hormuz, resulting in a crew casualty.
Iran reportedly set conditions for reopening the waterway, including frozen-asset releases, sanctions relief and an end to the naval blockade.
Saudi Aramco used slower, more expensive ship-to-ship transfers, while Gulf diesel and crude flows fell from last year.
- Who
- Crude traders, analysts, Iran, Saudi Aramco, shipping operators, the United States and the United Kingdom’s UK Maritime Trade Operations centre.
- What
- Crude futures rose for a fourth straight session as concerns grew about energy supplies and shipping through the Strait of Hormuz.
- Where
- Prices moved on the Multi Commodity Exchange and international markets; the shipping risks involved the Strait of Hormuz and waters off the United Arab Emirates coast.
- When
- Wednesday; Brent had remained above USD 91 per barrel for three consecutive days after the 60-day US-Iran ceasefire window expired.
- Why
- Renewed geopolitical uncertainty, a vessel attack, Iran’s reopening conditions and falling regional energy flows increased fears of supply disruptions.
Key facts
- MCX September crude
- Rs 8,145 per barrel, up Rs 57, or nearly 1%
- Brent October futures
- USD 91.65 per barrel, up nearly 1%
- WTI October futures
- USD 85.65 per barrel, up 1%
- MCX trading volume
- 11,535 lots
- Shipping incident
- A merchant vessel was hit by an unknown projectile in the Strait of Hormuz, causing a crew casualty
- Regional flows
- Gulf diesel flows fell around 80% from last year, while crude flows fell 48%
- Market spread
- Near-month crude traded about USD 4 above contracts two months out
Quotes
Anindya Banerjee
Head of Commodity and Currency Research at Kotak Neo
“MCX crude oil futures extended its gains for the fourth consecutive session as uncertainty over Middle East supplies and Strait of Hormuz shipping continued to support oil prices.”
thehansindia.com
freepressjournal.in
“Brent has held above $91 per barrel, for a third straight day after the 60-day ceasefire window between the US and Iran expired without an agreement.”
thehansindia.com
Sources
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