WTI Retreats as Saudi Oil Workaround Eases Supply Fears
Japan's Refiners Have Enough Crude to Last Through November, Industry Body Says November WTI crude oil futures were trading at $96.35 at 0:51 GMT early Friday, up $0.49, or 0.51%, for the week.
The contract traded as high as $101.69 and as low as $94.64.
The range reflects a market caught between broken Saudi infrastructure and an export workaround that only moves part of the lost volume.
Saudi Arabia’s East-West pipeline outage drove WTI through $100.
The kingdom’s Sohar transfers to Asian refiners pulled the contract back.
The market is now putting a smaller premium on it.
Saudi Pipeline Attack Changed the Supply Math A drone attack damaged three pumping stations along the East-West pipeline, Saudi Arabia’s main route for moving crude to Yanbu and around the Strait of Hormuz.
The line normally carries roughly 4 million to 5 million barrels per day.
With it down, Saudi exports became more dependent on a waterway where traffic has already been severely disrupted.
WTI reached $101.69 because the market was trading the loss of Saudi Arabia’s main Hormuz bypass, not a demand surprise.
Repair estimates range from a partial restart within days to five or six weeks of work.
Houthi attacks on Saudi targets and the group’s hold near Perim Island at the entrance to the Red Sea added to the concern.
| 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% |
Comments
Post a Comment