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Brent edges toward $87 as Hormuz tensions and Iran outages flare
China’s crude inventories fell by about 35 million barrels in July, a decline that could support fresh buying of Russian and Iranian barrels over the coming weeks.
Oil prices moved higher as tensions around the Strait of Hormuz flared again, with Iranian exports collapsing and pushing Brent crude toward the mid to high 80s. OilPrice said the renewed disruption raises the risk of a further run toward the $100 level.
The article points to a potential demand offset from China, where crude inventories were described as having dropped by about 35 million barrels in July. That draw, linked to record-high stock declines in Shandong, could encourage purchases over the weeks ahead, particularly for Russian and Iranian supply.
OilPrice also cited signs that China may be restarting crude procurement, with the expectation that Chinese buyers, including “teapots,” will step up Iranian purchases as inventories in northeastern Shandong continue to fall. It added that Iranian barrel pricing is firming as new supply from Kharg Island appears to dissipate, with no VLCC loads seen in Iran during the first 10 days of August.
Beyond crude dynamics, the report mentioned a separate US energy infrastructure deal, with P66, Kinder Morgan, and HF Sinclair agreeing to build the $5 billion Western Gateway pipeline system to move refined products to California from St. Louis. It also noted that BP agreed to buy a 70% stake in the Calypso deepwater offshore project in Trinidad and Tobago from Au.
Latest closeWTI crude $82.30 ▲5.3%|Brent $87.85 ▲5.2%