West Texas Intermediate approached $105, marking a 12% increase this week, while Brent for July exceeded $111 per barrel. Iran’s supreme leader, Mojtaba Khamenei, voiced skepticism regarding the potential for a deal with the United States in a written statement, vowing to retain the Islamic Republic’s nuclear and missile capabilities and suggesting that Tehran would uphold its control over the strait.
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With the stalemate in negotiations prolonging the nearly total shutdown of this crucial canal, which before the conflict handled around 20% of the world’s crude oil, prices have surged by over 25% in the last two weeks. The uncertainty around future supply has led to significant price swings and a flattening of the futures curve.
As noticeable domestic tightness begins to surface for the first time since the onset of the conflict, the gap between paper and physical prices is narrowing. Last week, US oil exports hit a record high as global customers turned to US producers to compensate for the shortfall in supplies from the Middle East.
(Edited by : Juviraj Anchil)
