Crude Oil Surges Toward $90

Crude oil futures rose to $89.5 per barrel on Tuesday, the highest in over one month, as more strikes in the Middle East prolonged the period of suspended exports from the region. The US launched a new wave of attacks against Iran after both countries exchanged strikes earlier in the week, heightening the conflict even though the US had signaled it would stick to only economic measures against Tehran. Tanker flows were set to drop sharply after reports that GCC nations enabled the export of barrels had allowed for some respite in crude oil and refined goods prices. A greater rebound to crude prices were prevented by major economies tapping on inventory to tame higher import turnover. The US SPR plunged to less than 290 million barrels, the lowest since 1982. On top of that, China significantly cut imports of crude oil and refinery runs in the country were cut by only 1.6 million barrels per day, indicating the cutback in crude consumption despite steady demand for refined product.

Crude oil rose to around $89 a barrel on Tuesday as renewed hostilities between the US and Iran heightened concerns over prolonged disruptions to energy shipments through the Strait of Hormuz. US forces struck an island in the strategic waterway, prompting Iran to retaliate with attacks on US-linked targets in the UAE and Jordan, marking the first direct exchange of fire in about a month. Two supertankers were reportedly hit by unidentified projectiles while transiting the chokepoint, highlighting the risks facing vessels in the region. Despite the escalating tensions, crude exports continue to move through Hormuz, with some tankers reportedly switching off their transponders. Producers including Saudi Arabia, the UAE, Kuwait and Iraq are still managing to ship barrels. However, the threat of further attacks remains a major concern, particularly after a tanker was reportedly struck by three unidentified projectiles near Oman while exiting the waterway.

Crude oil rose to around $88 a barrel on Tuesday, following a 2.8% gain on Monday, as renewed hostilities between the US and Iran heightened concerns over prolonged disruptions to energy shipments through the Strait of Hormuz. US forces struck an island in the strategic waterway, prompting Iran to retaliate with attacks on US-linked targets in the UAE and Jordan, marking the first direct exchange of fire in about a month. Two supertankers were reportedly hit by unidentified projectiles while transiting the chokepoint, highlighting the risks facing vessels in the region. Despite the escalating tensions, crude exports continue to move through Hormuz, with some tankers reportedly switching off their transponders. Producers including Saudi Arabia, the UAE, Kuwait and Iraq are still managing to ship barrels. However, the threat of further attacks remains a major concern, particularly after a tanker was reportedly struck by three unidentified projectiles near Oman while exiting the waterway.