Oil Weakens Slightly, Market Digests New Russian Sanctions + Hormuz
Oil prices weakened slightly in the European session on Tuesday (February 10th), but the market was still digesting the Hormuz issue—so the decline wasn't too deep. Brent was last around $69.05/barrel (+0.01%), while WTI was at $64.32/barrel (-0.06%). This movement indicates a market tug-of-war: the risk premium remains, but traders are also starting to take more cautious positions.
The main focus remains the Strait of Hormuz. The US recently issued a directive to US-flagged vessels to sail as far away from Iranian territorial waters as possible and has verbally refused any requests for boarding. The issue is sensitive because about a fifth of global oil consumption passes through this route—so any minor escalation could quickly escalate into supply concerns.
On the other hand, there's the Russian factor, which is keeping the market from relaxing. The European Union has proposed expanding sanctions, for the first time targeting ports in third countries (Georgia and Indonesia) that handle Russian oil—a move that could tighten logistics and insurance/maritime flows related to Russian exports.
The spice isn't over yet: India is also said to be shifting purchases—Indian Oil purchased 6 million barrels from West Africa and the Middle East, avoiding Russian oil as New Delhi seeks to build space for trade negotiations with Washington. If this trend spreads, the map of oil flows to Asia could change further.
Source: Newsmaker.id
