Oil Prices Head for 20% Monthly Surge Despite Recent Pullback
Oil Prices Head for 20% Monthly Surge Despite Recent Pullback REalloys is establishing a comprehensive,… 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 have been trending lower over the past couple of days, but the benchmarks are on course to book both a weekly and a monthly rise.
On a monthly basis, Brent crude and West Texas Intermediate have both gained close to 20%.
At the time of writing,Brent crudewas trading at $87.67 per barrel, andWTIwas changing hands for $82.07 per barrel, both down by 1% from Thursday on reports about more tankers crossing the Strait of Hormuz even as hostilities between Iran and the United States continue.
“There is this sense that there is a lot of supply waiting to hit the market once all of this is resolved, and that is a weight against any kind of dramatic price rise,” Again Capital partner John Kilduff said, as quoted by Reuters.
The number of tankers crossing Hormuz is still a fraction of what traffic used to be before the U.S.
and Israel first struck Iran on February 28 but it appears any news of improvement in traffic results in lower futures prices, regardless of the degree of that improvement.
“Though still in single digits, there are also reports that the shuttling of oil across the strait has resumed.
This will not be detected by tracking data, given that transponders will be turned off,” ING commodity strategistswrotein a note today.
Energy Secretary Chris Wright as saying some 13 million barrels daily were leaving the Persian Gulf.
Strategic Petroleum Reserve is running low, and releases will have to stop soon, as already noted by the Department of Energy.
The SPR has helped keep prices under control in previous months, but once the draws end, prices will rise.
On the bearish side, Saudi Arabiasaidit was seeking partners for a defense-strengthening coalition this week, to focus on the Ban el-Mandeb Strait and the Gulf of Aden.
| 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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