Oil eases on signs US is loosening Iranian closure of Strait of Hormuz
Oil prices eased more than 1% on Tuesday after climbing by as much as 6% in the previous session on signs the U.S. Navy is loosening Iran's grip on the Strait of Hormuz, potentially opening up supply from the Middle East.
The U.S. on Monday launched a new operation aimed at reopening the strait to shipping. Maersk (MAERSKb.CO), opens new tab later said the Alliance Fairfax, a U.S.-flagged vehicle carrier, exited the Gulf via the strait accompanied by the U.S. military, easing some supply disruption fears.
Brent oil futures for July fell $1.22, or 1.1%, to $113.22 per barrel at 0323 GMT after settling up 5.8% on Monday. U.S. West Texas Intermediate (WTI) crude fell $2.02, or 1.9%, to $104.40, after gaining 4.4% in the previous session.
'The successful escorted exit of the Maersk-operated vessel has helped ease some immediate supply disruption fears,' said Tim Waterer, chief market analyst at KCM Trade.
'It shows that limited safe passage is possible under current conditions and helps chip away at some of the worst-case supply disruption fears. However, it's still very much a one-off event rather than a full reopening,' he said in an email.
Reuters
Oil prices eased more than 1% on Tuesday after climbing by as much as 6% in the previous session on signs the U.S. Navy is loosening Iran's grip on the Strait of Hormuz, potentially opening up supply from the Middle East.
The U.S. on Monday launched a new operation aimed at reopening the strait to shipping. Maersk (MAERSKb.CO), opens new tab later said the Alliance Fairfax, a U.S.-flagged vehicle carrier, exited the Gulf via the strait accompanied by the U.S. military, easing some supply disruption fears.
Brent oil futures for July fell $1.22, or 1.1%, to $113.22 per barrel at 0323 GMT after settling up 5.8% on Monday. U.S. West Texas Intermediate (WTI) crude fell $2.02, or 1.9%, to $104.40, after gaining 4.4% in the previous session.
'The successful escorted exit of the Maersk-operated vessel has helped ease some immediate supply disruption fears,' said Tim Waterer, chief market analyst at KCM Trade.
'It shows that limited safe passage is possible under current conditions and helps chip away at some of the worst-case supply disruption fears. However, it's still very much a one-off event rather than a full reopening,' he said in an email.
Reuters
Oil prices eased more than 1% on Tuesday after climbing by as much as 6% in the previous session on signs the U.S. Navy is loosening Iran's grip on the Strait of Hormuz, potentially opening up supply from the Middle East.
The U.S. on Monday launched a new operation aimed at reopening the strait to shipping. Maersk (MAERSKb.CO), opens new tab later said the Alliance Fairfax, a U.S.-flagged vehicle carrier, exited the Gulf via the strait accompanied by the U.S. military, easing some supply disruption fears.
Brent oil futures for July fell $1.22, or 1.1%, to $113.22 per barrel at 0323 GMT after settling up 5.8% on Monday. U.S. West Texas Intermediate (WTI) crude fell $2.02, or 1.9%, to $104.40, after gaining 4.4% in the previous session.
'The successful escorted exit of the Maersk-operated vessel has helped ease some immediate supply disruption fears,' said Tim Waterer, chief market analyst at KCM Trade.
'It shows that limited safe passage is possible under current conditions and helps chip away at some of the worst-case supply disruption fears. However, it's still very much a one-off event rather than a full reopening,' he said in an email.
Reuters
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Oil eases on signs US is loosening Iranian closure of Strait of Hormuz
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