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Iran conflict risk threatens Asian crude supply plans for coming weeks
Traffic through the Strait of Hormuz has stalled to the lowest level since May, and analysts warn September fuel-output ramps may be delayed or not materialize.
Asian refiners that positioned for more crude from the Middle East in August are now facing potential delivery delays as hostilities in the region have re-escalated, potentially undermining plans to raise processing rates in the weeks ahead, according to Reuters.
The outlet reports that at the end of June and in early July, refiners were optimistic about a tentative reopening of the Strait of Hormuz after a U.S.-Iran memorandum of understanding, expecting steadily higher crude volumes in the third quarter.
Reuters also says the ceasefire collapse has left the expected ramp-up of fuel output at risk, with traffic through the Strait of Hormuz again falling to the lowest level since May, when only a small number of tankers transited the chokepoint each day.
Separately, Reuters reports threats from Iran-aligned Houthis to block the Bab el-Mandeb Strait, which could disrupt Saudi Arabia's Red Sea oil exports, are adding pressure on Asian refiners that have relied on Red Sea crude, with potential delays in July and August loadings and delivery schedules.
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