Oil Markets Are Pricing A Supply Surge That Isn’t Guaranteed
Australian Gas Exploration Surges as Energy Security Takes Center Stage What I Cover Irina Slav has been writing about global energy markets since 2007, covering the oil and gas industry, energy security, commodities, and the… Crude oil prices are in freefall after the United States and Iran agreed on a ceasefire, set to last 60 days.
Traders expect the ceasefire to unleash an avalanche of crude, and indeed, tankers are leaving the Persian Gulf in growing numbers.
And yet Iran juststrucka commercial ship in Hormuz.
Bloombergreportedearlier this week that the ceasefire prompted huge discounts in available crude cargoes, noting how Angolan crude was selling at a $10 discount to dated Brent—for the first time in a decade.
Not only this, but Chinese refiners were offering crude oil cargoes for sale, the publication wrote, citing unnamed traders.
“You actually get a discount to buy a barrel now versus a barrel tomorrow because of the weakness in the Asian pull on Middle Eastern grades,” Daan Struyven, co-head of global commodities at Goldman Sachs, told Bloomberg.
“Reopening is going well and quickly.” This appears to be the general feeling in trading and analyst circles.
Indeed, analysts were somewhat baffled by the speed with which oil prices dropped amid the reports of more tankers exiting the Strait of Hormuz loaded.
“The market has rebalanced through a meaningfully different mix of demand losses and inventory withdrawals than we initially assumed,” JP Morgan commodity analystssaid, as quoted by the Wall Street Journal.
SetOilPrice.comas a preferred source in Googlehere.
“The market is largely focused on the resumption of oil flows through the Strait of Hormuz, which continues to increase,” the Dutch bank’s commodity team wrote today.
“However, much of the increase reflects previously stranded vessels leaving the Persian Gulf.
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | +0.34% |
| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
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