Oil Stable, Hormuz Remains Vulnerable
Oil prices stabilized after a tanker was reportedly hit by a projectile in the Strait of Hormuz. This incident reminded the market again that security risks in this vital energy shipping route have not completely disappeared.
Brent held above US$72 per barrel after a slight decline on Monday. Meanwhile, West Texas Intermediate, or WTI, hovered around US$69 per barrel. UK Maritime Trade Operations reported that a tanker traveling south was hit by a projectile on its port side, approximately 8 nautical miles from Limah, Oman, causing a fire. No casualties were reported.
The Strait of Hormuz had previously partially reopened after being nearly closed due to the US-Iran war. Several ships, including convoys connected to Japan, began to resume passage. However, shipping traffic has not yet recovered to pre-conflict levels, so the market remains wary of potential supply disruptions.
On the other hand, pressure on oil prices continues to come from the prospect of increased supply. Saudi Aramco cut its Arab Light price for Asian buyers by US$11 per barrel, to a US$1.50 discount below the regional benchmark. This move follows OPEC+'s decision to raise production quotas next month, signaling that producers are preparing to increase supply as conditions return to normal.
At 8:12 a.m. Singapore time, Brent for September delivery rose 0.5% to US$72.32 per barrel. WTI for August delivery also rose 0.5% to US$68.86 per barrel. Looking ahead, the market will be closely monitoring the US Energy Information Administration's Short-Term Energy Outlook report for the latest picture of global oil production and demand. (asd)*
Source: Newsmaker.id
