Oil Prices Fall as Iran-Oman Talks Fuel Hopes of Strait Reopening
Oil Prices Fall as Iran-Oman Talks Fuel Hopes of Strait Reopening 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 dipped earlier today following news reports about Iran and Oman renewing their talks about joint management of the Strait of Hormuz, as those reports were taken to mean the waterway could soon reopen for normal traffic.
Reutersreportedthat the two were discussing “a joint temporary navigational corridor” and clearing the strait of mines.
As a result,Brent crudewas trading at $86.69 per barrel at the time of writing, withWest Texas Intermediateat $80.61 per barrel at the time of writing.
Traders appear to have shrugged off the latest U.S.
sanctions against Iran aimed at squeezing its oil trade even further.
ING commodity analystswrotein a note earlier today that a Pakistani statement of progress on peace talks had also contributed to the downward pressure on crude.
They were, however, cautious about any expectations of a swift return to normal in the Persian Gulf.
“Any agreement between these two parties [Iran and Oman] does not mean we will see normalisation in oil flows through the key chokepoint,” Warren Patterson and Ewa Manthey wrote.
“We would likely need to see the US lift its blockade on Iranian ports and ease sanctions on Iran before we see any move towards normalisation.” Meanwhile, tanker tracking data from Windwardshowedjust one vessel traversing the Strait of Hormuz on Tuesday, a Barbados-flagged LPG carrier that entered the strait.
No outbound tanker traffic was recorded for the 24-hour period, the firm said.
The tanker moved in dark mode, the data also showed.
“The US claims that an average of 8-9m b/d of oil is flowing through the Strait of Hormuz, which may be achievable over short time periods,” ING’s Patterson and Manthey also wrote.
| 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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