US benchmark WTI crude futures advanced today on mounting concerns over supply disruptions caused by the conflict in the Middle East.
August Nymex WTI rose by $1.68/bl to $84.91/bl while September Ice Brent rose by $1.79/bl to $91.01/bl. The September Brent-September WTI spread narrowed by 7¢/bl to $6.67/bl.
WTI at the Magellan East Houston terminal was discussed at a prompt 25-35¢/bl premium bid-ask spread to the Cushing benchmark at 3pm ET, according to the Argus Crude Market Ticker, above Monday's 17¢/bl volume-weighted average premium.
Vessels are continuing to violate a US blockade on Iranian ports, while commercial traffic through the strait of Hormuz remains overwhelmingly controlled by Iran, despite US official's claims to the contrary.
The US Central Command (Centcom) said it redirected seven commercial vessels and disabled one to prevent ships from leaving or entering Iranian ports as of 20 July. US president Donald Trump on Tuesday told reporters during a meeting with Lebanese president Joseph Aoun that the blockade is "like a steel wall" and that no ships are getting through.
But data from vessel tracking service Vortexa shows that nine vessels departing or heading to Iran ports have transited through the strait of Hormuz since the US blockade was reimposed on 14 July.
Separately, several large tankers on 21 July turned away from voyages passing Yemen's coastline or the Bab el-Mandeb strait in the Red Sea, according to AIS data. Three were very large crude carriers (VLCCs) and one was an Aframax. All had either loaded, or were going to load, crude at Saudi Arabian Red Sea ports.
This comes a day after the Yemen-based, Iran-backed Houthis militant group said it imposed a maritime ban on Saudi Arabia. The Houthis today said six ships had turned back, although that could not be verified.
Elsewhere, CPC Blend crude loadings remain suspended following recent drone attacks on tankers at the Caspian Pipeline Consortium (CPC) terminal on Russia's Black Sea coast, traders say. Loadings were halted on Monday after the tanker Nelsa was hit while loading at the terminal's SPM 1 single-point mooring buoy.
Nymex RBOB rose by 1.69¢/USG to $3.4059/USG while Nymex ultra-low sulphur diesel rose by 0.76¢/USG to $4.1266/USG.
By Stephen Cunningham

