Trending
Oil
Source: Newsmaker.id
Oil prices softened during Wednesday's trading (July 16) after reports that Saudi Arabia was offering additional oil cargoes via Oman eased concerns regarding the scale of supply disruptions in the Middle East. Brent is currently trading around US$107.97 per barrel, while WTI stands at approximately US$104.52 per barrel.
Downward pressure emerged after Saudi Arabia offered additional oil shipments to Asian refineries via a ship-to-ship transfer mechanism near the Port of Sohar, Oman. This move followed a drone attack that damaged a major Saudi pipeline leading to the Red Sea.
The news slightly alleviated fears that Saudi export disruptions would be more severe than anticipated. However, vessel traffic through the Strait of Hormuz remains very low; only four ships passed through on Tuesday—down from seven the previous day and well below the 10-day average of 18 vessels.
Nevertheless, analysts assess that the flow of crude oil and energy products through Hormuz remains relatively resilient. Citi projects that Middle East tensions could still support oil prices in the short term, prior to the potential reopening of the Hormuz route in the fourth quarter of 2026.
Additional pressure came from the United States after the American Petroleum Institute reported a 7.1-million-barrel increase in crude oil inventories for the week ending September 11. This figure defied market expectations, which had anticipated a decline of approximately 1.6 million barrels.
Newsmaker Analysis: The correction in Brent and WTI prices indicates that some of the risk premium is beginning to fade now that Saudi Arabia has found alternative supply routes. However, prices remain elevated, and conditions at Hormuz have not yet normalized. As long as vessel traffic stays low and the global diesel market remains tight, the risk of a price rebound persists. Conversely, if Saudi supplies increase and US inventories continue to rise, downward pressure on oil prices could continue. (arl)
Source: Newsmaker.id