Commodities
Home›Commodities›Energy›Oil prices set for about 20% monthly gain amid Hormuz…
Oil prices set for about 20% monthly gain amid Hormuz tankers
Brent was around $87.7 per barrel and WTI about $82.1, as more tankers reportedly cross the Strait of Hormuz while the U.S. Strategic Petroleum Reserve is running low.
Oil prices have pulled back over the past couple of days, but crude benchmarks are still on track for weekly and monthly gains, with both Brent and West Texas Intermediate up close to 20% on a monthly basis, OilPrice reports. At the time of writing, Brent was trading around $87.67 per barrel and WTI around $82.07 per barrel, each down about 1% from Thursday.
The price drop despite the longer-term rise is linked to reports of more tankers crossing the Strait of Hormuz, even as tensions between Iran and the United States continue. OilPrice cites market commentary that improved traffic can weigh on futures prices, since it suggests supply could return after the situation is resolved.
OilPrice also notes that the number of tankers crossing Hormuz is still far below pre-strike levels after the U.S. and Israel struck Iran on February 28. It adds that ING commodity strategists pointed to resumed oil shuttling, which they say may not be fully captured by tracking due to transponders being turned off.
On the other side, OilPrice highlights that the U.S. Strategic Petroleum Reserve is running low, and that releases will need to stop soon, which could limit downside even as reports about Hormuz traffic influence near-term sentiment. The outlet also references U.S. Energy Secretary Chris Wright saying about 13 million barrels per day were leaving the Persian Gulf.
Latest closeWTI crude $86.80 ▲3.8%|Brent $90.12 ▲1.2%