2 days ago
Crude Futures Rise Fourth Day on US-Iran Hormuz Fears
Oil prices went up for the fourth day in a row.
The increase followed new fighting between the United States and Iran.
The United States struck rocket-launcher sites on Iran’s Larak Island.
Iran then fired missiles at American bases in the region.
Traders worried that the conflict could disrupt ships carrying oil.
The Strait of Hormuz is an important route for oil shipments.
Reports said only five tankers crossed the strait each day over the weekend.
Oil flows through the strait averaged 6.7 million barrels per day last week, compared with 20 million before the war.
An analyst expects Brent crude to stay between USD 85 and USD 95, with risks closer to the upper end.
MCX crude oil futures for September delivery rose Rs 232, or 2.91%, to Rs 8,216 per barrel.
The October MCX crude contract gained Rs 100, or 1.27%, to Rs 7,947 per barrel.
Brent crude rose 3.3% to USD 90.98 per barrel, while WTI increased nearly 3% to USD 85.77.
Fresh United States strikes on Iran and Iran’s retaliatory missile attacks raised fears of a wider conflict.
Tanker transits through the Strait of Hormuz reportedly fell to five vessels daily, while crude flows averaged 6.7 million barrels per day.
- Who
- The United States and Iran were involved in the reported military actions, while oil traders and analysts reacted to the developments.
- What
- Crude oil futures rose for a fourth consecutive session as military tensions increased concerns about energy-supply disruptions.
- Where
- The United States struck sites on Iran’s Larak Island, while Iran targeted American bases in the region; supply concerns focused on the Strait of Hormuz.
- When
- The price gains were reported on Monday after military strikes and retaliatory attacks over the weekend.
- Why
- Markets feared that the conflict could disrupt or obstruct oil tanker traffic through the Strait of Hormuz.
Key facts
- MCX September crude
- Rs 8,216 per barrel, up Rs 232 or 2.91%
- MCX October crude
- Rs 7,947 per barrel, up Rs 100 or 1.27%
- Brent crude
- USD 90.98 per barrel, up USD 2.88 or 3.3%
- WTI crude
- USD 85.77 per barrel, up USD 2.37 or nearly 3%
- Military escalation
- The United States struck two rocket-launcher sites on Iran’s Larak Island, and Iran retaliated with missile attacks on American bases.
- Tanker traffic
- Visible tanker transits through the Strait of Hormuz fell to five vessels per day over the weekend.
- Crude flows
- Crude flows through the strait averaged 6.7 million barrels per day last week, compared with 20 million before the war.
- Analyst outlook
- Brent is expected to remain within USD 85-95, with risks shifting toward the upper end.
Quotes
Anindya Banerjee
Head of Commodity and Currency Research at Kotak Securities
“Mining the strait has always been this market's single biggest fear, because mines do not distinguish between flags and take months to clear, even the preparation is enough to reprice risk.”
freepressjournal.in
thehansindia.com
Sources
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