US benchmark WTI crude futures rose today after an attack on an LNG tanker raised concerns about the pace of a return to normal shipping through the strait of Hormuz.
August Nymex WTI rose by $1.89/bl to $70.44/bl while September Ice Brent rose by $2.17/bl to $74.16/bl. The September Brent-September WTI spread widened by 39¢/bl to $3.82/bl.
WTI at the Magellan East Houston terminal was discussed at a prompt 5-15¢/bl premium bid-ask spread to the Cushing benchmark at 3pm ET, according to the Argus Crude Market Ticker, compared with Monday's 10¢/bl volume-weighted average premium.
Prices rose further above $72/bl in after-hours trade Tuesday after US sanctions enforcers revoked authorization allowing purchases of Iranian crude and refined products, as the US-Iran interim deal signed last month began to come apart.
An LNG tanker was hit on its port side while traveling southbound through the strait of Hormuz, triggering a fire on board. The attack occurred about eight nautical miles (15 km) east of Limah, Oman, according to the UK Maritime Trade Operations.
Vessel transits using the Hormuz shipping lane near the Omani coast while broadcasting AIS slowed to a near halt following the strike.
In addition, at least one laden and two empty LNG carriers have diverted away from the strait after the attack.
Saudi Arabia's state-controlled Saudi Aramco has again asked its customers in Asia-Pacific to submit volume requests for August-loading term crude exports from Ras Tanura, after the recent increase in traffic through the strait of Hormuz raised the possibility of a revival of such exports.
State-owned QatarEnergy appears to have recently offered prompt supplies of Qatari condensate in the spot market, marking the first such offers since the start of the US-Iran conflict.
Elsewhere, the Cuban government is investigating the cause of another nationwide blackout, state-run power utility UNE said. Blackouts have become more frequent and longer in Cuba because of reduced access to imported fuel since the US has tightened an economic blockade of the island of 12mn people.
The US imposed a blockade in January on Cuban crude and fuel imports from main supplier Venezuela following its 3 January overthrow of Venezuela's president, Nicolas Maduro, Cuba's foremost backer.
In the US, the Energy Information Administration said Tuesday that the WTI benchmark will slide steadily to reach below $60/bl by the end of 2027 as the return of Middle East production puts the global market back into an oversupplied scenario. The agency also sharply lowered its 2026-2027 gasoline and diesel price forecasts.
Nymex RBOB fell by 4.94¢/USG to $2.9539/USG while Nymex ultra-low sulphur diesel rose by 0.33¢/USG to $3.3017/USG.
By Eunice Bridges
