Oil Gains as Focus Shifts to Supply Recovery and Demand
- Brent crude futures gained 28 cents to $72.29 on Tuesday as traders assessed global supply increases and demand prospects, while United States West Texas Intermediate crude rose to $68.84 a barrel.
- Saudi Aramco cut its August official selling price for Arab Light crude to Asia by $11 to $1.50 a barrel, while the Organization of the Petroleum Exporting Countries agreed Sunday to increase output by 188,000 bpd.
- Monday night, Iran's Revolutionary Guards fired at least two missiles at commercial ships in the Strait of Hormuz according to Axios, and President Donald Trump threatened to "finish the job" if no deal is reached.
- Japanese-Owned supertankers carrying Saudi Arabian crude moved through the Strait of Hormuz on Tuesday, yet ANZ analysts noted tanker transits remain in single digits with "The initial rebound in tanker transits through the Strait of Hormuz has stalled."
- Tim Waterer, chief market analyst at KCM Trade, said the market remains "wary of putting too much faith in the stability of the current truce given the on again-off again nature of US-Iran relations," while watching for demand response from China.
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15 Articles
Oil price rising this morning on the raw materials markets. The US Wti with delivery August passes hands to 69.35 dollars per barrel (+1.17%), while the Brent with delivery September is traded to 72.85 dollars (+19%). (ANSA). (ANSA)
Today's oil prices rose slightly, with future contracts for Brent's ore rising 28 cents, or 0.39 percent, to $72.29 per barrel by 46:00 Greenwich time. Western Texas crude contracts also rose 29 cents, or 0.26 percent, to $68.84 per barrel.
The Economic Times
Oil prices gain as focus shifts to supply recovery and demand
Oil prices saw slight gains Tuesday as traders focused on supply increases. Traders are looking beyond Middle East tensions to demand prospects. The United Arab Emirates increased crude output significantly in June. Saudi Arabia also cut its August crude selling price to Asia. Market watchers await demand response, especially from China.
Brent crude is currently hovering around $72 per barrel, down from $126 at the height of the Iran conflict. At first glance, it may seem like markets have declared victory over the energy shock. But the reality in the Strait of Hormuz is far more complex, with shipping traffic only just beginning to recover. Is the energy crisis really over, and who stands to gain the most?
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