Prices diverged as an oversupply of crude and products resulted in global markets largely shrugging off the escalation in geopolitical tensions in the Mideast Gulf. Atlantic basin benchmark North Sea Dated inched higher by just 44￠/bl in the week to 13 June to hit $62.86/bl. But US marker WTI was down by 31￠/bl to $52.28/ bl. Mideast Gulf marker Dubai finished the week up by $1.38/bl at $60.28/bl. The US benchmark came under pressure from a further rise in US commercial crude stocks, which posted a 2.2mn bl build in the week to 7 June and are now at their highest since July 2017, at 485.5mn bl. But the Mideast Gulf benchmark was bolstered by falling output from Saudi Arabia and escalating tensions in the Gulf of Oman. Saudi production fell to 9.67mn b/d in May - its lowest since 2014 - leaving balances more exposed to geopolitical risk. And tensions are escalating in the Mideast Gulf, with the US blaming Iran for apparent attacks on two tankers in the Gulf of Oman on 13 June. The incident occurred near the strait of Hormuz - a shipping lane for 20mn b/d of crude and oil products.
展开▼
