Oil Set for Fourth Straight Weekly Loss as Hormuz Flows Return
India Denies Directly Exporting Fuel to Russia, But Admits Traders May Be UK government-backed ESG reporting platform… What I Cover Tsvetana Paraskova is an energy and commodities journalist who has contributed to Oilprice.com for nearly a decade, covering global energy markets, commodities,… Oil futureswere on track to post their fourth consecutive weekly loss early on Friday as the tentative reopening of the Strait of Hormuz and the uptick in oil flows weigh down prices.
markets closed for the July 4 weekend, both benchmarks, Brent and WTI, were gaining about 0.5% on some profit-taking.
Over the past three weeks, prices have slumped to nearly pre-war levels, withBrentnow in the low $70s per barrel andWTI Crudetrading below $70.
The U.S.-Iran memorandum to negotiate a deal and the reopening of the Strait of Hormuz have prompted hopes that immediate physical supply will jump in the coming weeks and ease concerns about shortages, especially in Asia.
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The supply picture is improving, according to the Brent futures curve, ING’s commodities strategists Warren Patterson and Ewa Manthey wrote in areporton Friday.
“The increase in oil flows is putting growing pressure on the front end of the ICE Brent forward curve,” they said.
The forward curve is moving further into contango, the market structure in which prices for contracts dated further out in time are higher than the prompt contracts.
This type of curve suggests that concerns about the immediate lack of crude supply have eased significantly.
Gulf producers, including Iran, are now rushing to ship oil out of the Strait of Hormuz, until the negotiation window expires in August, with uncertainties beyond that.
Saudi Arabia is estimated to have pushed over10 million barrelsof crude out of the Strait of Hormuz in recent days, as supertankers continue to load oil from the Saudi port of Ras Tanura in the Persian Gulf and Saudi Arabia is ramping up oil exports to Asia.
and Iran announced the MoU, market sentiment has turned decisively bearish, some analysts say too bearish as oil is in oversold territory.
| 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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