World News
Saudi Resiliency Causes Oil To Retreat, But Iran Vows To Keep Hormuz Closed
Oil prices on Thursday retreated from the escalations experienced earlier this week, thanks once more to Saudi Arabia affirming that its east-west pipeline, which transported 7 million barrels per day of crude prior to being attacked by Iran-backed Houthis, would be fixed sooner than later.
Goldman Sachs estimated that repairs could take up to eight weeks but added that they could also be completed “very soon,” and analysts worried that a prolonged disruption could cut off up to 4 percent of global oil supply.
As of 1603 GMT, Brent dropped $2.67, or 2.5 percent, to $103.13 per barrel; West Texas Intermediate was down $1.61, or 1.6 percent, at $100.82 per barrel.
U.S. energy secretary Chris Wright on Thursday signalled a quicker return to service for the Saudi pipeline (reportedly in a matter of days instead of weeks), while the kingdom pivoted by maintaining shipments via additional loadings off Oman.
As for the U.S.-Iran hostilities, a covert meeting between U.S. president Donald Trump’s administration officials and the Houthis resulted in the latter pledging not to attack U.S. or Israeli vessels.
Also, Trump on Thursday stated that Iranian officials had reached out to Washington to negotiate a deal and added, “hopefully we are towards the end of the war…. I have a big decision coming up: Do I want to go in and annihilate them [the Iranian regime] or do I not?”
However, in the previous session a top Iranian official publicly rejected talks unless all of Iran’s conditions are met; and on Thursday, another official, Mohammad Baqer Zolqadr, vowed that Iran will keep the Strait of Hormuz closed until Trump and Israeli prime minister Benjamin Netanyahu are removed from power.
Despite Middle East tensions at an all-time high, the resiliency demonstrated by the Saudis was a relief to analysts: Christopher Tahir, senior market strategist at trading platform Exness, said, "Oil prices extended the previous session's losses on Thursday as concerns over Middle East supply disruptions eased to some extent."
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 896.00 | 6.00 | 1254.50 | 11.50 |
| Rotterdam | 692.00 | 9.50 | 1333.00 | 7.00 |
| Houston | 754.50 | 9.00 | 1398.50 | 28.50 |
| Fujairah | 984.50 | 5.00 | 1686.00 | 9.50 |
| Global 20 Ports Average | 884.50 | 8.00 | 1508.00 | 8.00 |
| Global 4 Ports Average | 831.50 | 7.00 | 1418.00 | 10.50 |
| Global Average Bunker Price | 937.00 | 6.50 | 1573.50 | 6.50 |
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