Oil markets could face additional pressure if the Strait of Hormuz reopens, industry executives say, after a U.S.-Iran interim deal. Reuters and other reports indicate the reopening could release oil volumes that were previously stranded in the Middle East Gulf, potentially adding to global supply. The expected impact is tied to a broader shift already underway: Gulf producers have increased exports using ship-to-ship transfers off the United Arab Emirates and Oman. This activity has helped weigh on Middle East crude pricing, with market indicators described as moving into discounts earlier in the week. One report notes that the spot differentials for West Asia/Middle East crude turned into discounts on Tuesday, attributed to the higher export flows. While the timing and scale of any further supply released upon reopening are not quantified in the coverage, multiple outlets describe a link between improved shipping access through Hormuz and the prospect of a “wave” of additional barrels reaching global markets. Overall, sources agree the reopening scenario adds downside risk for Middle East crude differentials and prices.
Strait of Hormuz reopening could lift oil supply and pressure Middle East crude prices
Oil markets could face additional pressure if the Strait of Hormuz reopens, industry executives say, after a U.S.-Iran interim deal. Reuters and other reports indicate the reopening could release oil...
- Industry executives say the Strait of Hormuz reopening could add a wave of oil supply to global markets.
- Reports link the expected supply pressure to a U.S.-Iran interim deal that precedes the reopening.
- Gulf producers increased exports via ship-to-ship transfers off the UAE and Oman.
- Earlier this week, Middle East/West Asia crude spot differentials moved into discounts, attributed to higher export flows.
- Multiple outlets describe the reopening risk as further downward pressure on Middle Eastern crude pricing.
The supply surge comes after Gulf producers increased exports through ship-to-ship transfers off the UAE and Oman, helping push Middle East crude benchmarks into discounts earlier this week.
2 months agoThe supply surge comes after Gulf producers increased exports through ship-to-ship transfers off the UAE and Oman, helping push Middle East crude benchmarks into discounts earlier this week.
2 months agoThe wave of supply comes after Gulf producers ramped up exports via ship-to-ship transfers off the United Arab Emirates and Oman this month, which depressed spot differentials for West Asia crude to discounts on Tuesday
2 months agoMiddle Eastern crude oil markets could come under further pressure if the Strait of Hormuz reopens on Friday following
2 months agoBy Nidhi Verma, Siyi Liu and Joyce LeeNEW DELHI/SINGAPORE, June 18 (Reuters) - Middle Eastern crude oil markets could come under further pressure if the Strait of Hormuz reopens on Friday following the U.S.-Iran interim deal, releasingmillions of barrels of oil stranded in the Middle East Gulf into global markets, industry executives said.The wave of supply comes after Gulf producers ramped up exports via ship-to-ship transfers off the United Arab Emirates and Oman this month, which depressed spot differentials for Middle East crude to discounts on Tuesday.
2 months ago
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