Benchmark oil prices fell more than $3 on Wednesday to their lowest level since before the start of the Iran war as supply concerns eased with more stranded oil tankers exiting the Strait of Hormuz.
Tag: Transport Fuels
Oil tanker operators are reaping record profits after nearly doubling the hire cost of vessels going through the Strait of Hormuz and wider Gulf region this week on rising demand as traffic through the waterway slowly picks up, according to shipping data and sources.
Russia is considering importing fuel and subsidising it to cap prices as ways to mitigate supply disruptions of gasoline and diesel caused by Ukrainian strikes on oil refineries, the Vedomosti daily reported on Tuesday, citing two unnamed sources.
Oil prices inched down on Tuesday, extending losses from the previous session, as investors looked for clearer signs of progress in restoring crude flows through the Strait of Hormuz following U.S.-Iran peace talks.
Airlines stand to save billions of dollars on jet fuel after an interim U.S.-Iran peace deal sent oil prices lower, but passengers are unlikely to see immediate relief as tight capacity may allow carriers to keep fares well above pre-war levels.
The U.S. Treasury Department authorized the production, delivery and sale of Iranian oil on Monday, a move promised under an agreement reached by Washington and Tehran last week.
Moscow shot down dozens of drones in the early hours of Monday and briefly suspended flights at airports, authorities in the Russian capital said, just days after Ukraine hit the city’s oil refinery again.
Brent crude futures climbed to $81.66 a barrel.
Brent crude ticked slightly higher on Friday but was still on track for a more than 8% weekly decline after Israel and Hezbollah agreed to a ceasefire and tanker traffic through the Strait of Hormuz increased.
Oil prices fell in early trading on Thursday after the U.S. and Iran signed an interim agreement that would end the Iran war, reopen the Strait of Hormuz and waive U.S. sanctions on Tehran’s oil, resolving the largest energy supply disruption in history.