Oil Prices Rebound as Middle East Supply Fears Return
Oil Prices Rebound as Middle East Supply Fears Return 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, which fell to their lowest in four weeks, staged a rebound earlier today, as traders shifted their attention from the U.S.
midterms to the Middle East, awaiting the next step in the war.
Benchmarksdroppedsharply on Tuesday on reports that Iran may be open to discussions on previously non-negotiable issues, but at the time of writing,Brent crudewas trading at $103.60 per barrel, withWest Texas Intermediateat $95.98 per barrel, after two energy consultancies warned against too much Gulf oil supply rebound optimism.
Rystad Energysaidyesterday it did not expect crude oil flows out of the Persian Gulf to return to normal anytime soon, even if the United States and Iran reach some form of agreement that would end the war.
Noting some of the priorities for the U.S., the firm said: “We consider it unlikely that all these points of contention can be resolved within the coming year.” Vortexa, meanwhile, said October oil flows via the Strait of Hormuz were lower than the previous month’s, countering a string of reports saying oil exports from the Gulf were back to pre-war levels, and even exceeding them.
According to the firm’s data, combined exports of crude oil, condensates, and fuels averaged 17.1 million barrels daily last month.
That was down from 18.9 million barrels in total daily exports in September.
Meanwhile, “President Trump's conflicting signals, with military strikes continuing alongside statements downplaying further escalation, have made it difficult for traders to build strong directional conviction,” Phillip Nova analyst Priyanka Sachdeva said asquotedby Reuters.
“The market still has a large risk premium baked in, particularly given the strong oil flows from the Persian Gulf,” ING’s commodity team said in a note on Tuesday, adding that despite recent positive signals from both the U.S.
and Iran, it was too early to get optimistic about the end of the war.
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| 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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