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Oil slips as Gulf talks ease Strait of Hormuz supply risks
ICE Brent settled 3.9% lower below $90 a barrel as Persian Gulf discussions progressed, but analysts cautioned that normalization would likely require US sanctions easing and a lift on the Iranian port blockade.
ING analysts Warren Patterson and Ewa Manthey said oil prices are facing renewed downward pressure, pointing to ICE Brent breaking below $90 per barrel amid improving signals from Persian Gulf talks.
They noted that even if discussions between relevant parties progress, it does not automatically translate into normalized flows through the Strait of Hormuz, a key chokepoint that remains fragile.
The analysis also highlighted a mismatch between US flow estimates, which claim an average of 8 million to 9 million barrels per day, and lower ship-tracking estimates that range from about 2 million barrels per day to roughly 6 million barrels per day.
On the US data front, they cited the API showing US crude inventories rose by 4.2 million barrels over the past week, while product markets tightened, with gasoline inventories down 3.2 million barrels and distillate inventories down 500,000 barrels.
Latest closeWTI crude $82.40 ▲1.4%|Brent $88.59 ▲1.8%|Gasoline (RBOB) $2.901 ▼7.3%