Oil Steadies After Four-Day Drop as Traders Watch Hormuz Flows
Crude found its footing after shedding more than 9 percent over four days, as Gulf supply concerns eased and shipping data pointed to a shift back toward the Strait of Hormuz.
A four-day slide, then a pause
Oil steadied after losing more than 9 percent over the previous four sessions, as Middle East supply concerns eased and traders tracked signs of progress in efforts to end the US-Iran conflict. West Texas Intermediate held near $96 a barrel, while Brent settled above $100.
Watching the Strait of Hormuz
Satellite data showed Saudi Arabia's observed crude loadings from inside the Persian Gulf have jumped, suggesting the kingdom has shifted exports back toward the Strait of Hormuz following the shutdown of a key cross-country pipeline. Flows through the strait, one of the world's most important oil chokepoints, remain the single data point traders are watching most closely.
What it means for prices
With over a fifth of global oil consumption passing through the strait, small shifts in shipping patterns there move markets quickly. For now, easing supply fears and firmer Hormuz flows have been enough to stop the slide, even without a clear resolution to the underlying tensions.
Reporting: this piece draws on and credits original reporting by Bloomberg.
