FINWIRES · TerminalLIVE
FINWIRES

EMEA Oil Update: Crude Mixed on Saudi Supply Concerns Ahead of US-Iran Talks

-- EMEA crude futures diverged in after-hours trading on Friday on concerns over Saudi Arabia supply disruptions and persistent bottlenecks in the Strait of Hormuz ahead of Iran-US talks.

Brent crude futures gained by 1.22% to $97.17 per barrel, while Murban oil futures were down 1.66% to $97.97/bbl.

ING strategists said crude extended gains for a second session amid fresh Middle East supply concerns.

On Thursday, Saudi Arabia said Iranian attacks on its energy infrastructure reduced the country's oil production capacity and East-West Pipeline throughput by about 600,000 barrels per day and 700,000 b/d, respectively.

Saudi Arabia's Ministry of Energy said Thursday Iran's continued attacks on energy infrastructure lead to reduced supply and slow recovery, according to local media reports. Kuwait also said it intercepted drone attacks targeting key energy facilities on Friday.

Earlier in the week, the US Energy Information Administration said Middle East producers shut in about 7.5 million b/d of crude oil production in March as storage capacity tightened, with outages projected to rise to 9.1 million b/d in April.

Fueling bearish sentiment, President Trump intensified his rhetoric against Tehran, saying Iran "doesn't seem to realize they have no cards," the only leverage the country holds is its ability to create short-term pressure by blocking the Strait.

The remarks come a day after Trump warned that Iran should stop charging tolls to vessels transiting the strategic waterway, as tanker traffic remains restricted on Friday.

ING analysts said while Trump struck an optimistic tone on resolving the six-week conflict, he threatened Tehran over charging fees in the Hormuz.

The latest shipping data shows that vessel activity through the Hormuz has increased slightly since the ceasefire took effect on Apr. 8, but flows remain well below normal levels. MarineTraffic said 14 vessels crossed the Strait on Apr. 8-9, including nine crossings on Apr. 9.

On Friday, Iranian Parliament Speaker Mohammad Bagher Ghalibaf said that two agreed-upon actions, a ceasefire in Lebanon and the release of Iran's blocked assets, must be implemented before negotiations begin.

Going forward, market participants' focus is now on the sustainability of the US-Iran ceasefire ahead of talks in Islamabad, Pakistan, on Saturday.

Saxo Bank strategists said the Hormuz closure remains a key focus ahead of talks between US and Iranian officials.

Related Articles

Australia

Intel Poised for 'Slight Beat' Amid Solid Server CPU Demand, RBC Says

Intel (INTC) is expected to report a "slight beat" in its fiscal first-quarter results amid robust server central processing unit demand, RBC Capital Markets said in a note e-mailed Tuesday.On Thursday, the chipmaker is likely to post adjusted per-share earnings and revenue above RBC's projections for breakeven and $12.20 billion, respectively, for the March quarter, according to the brokerage. The current consensus on FactSet is for non-GAAP EPS of $0.02 and sales of $12.42 billion."We expect a slight beat/raise driven by strong server CPU demand," RBC analyst Srini Pajjuri said. "(Personal computer) market also appears to be holding up for now."First-quarter revenue in the company's data center and artificial intelligence segment is pegged at $4.3 billion, representing a 3% annual gain, with room for potential upside, according to RBC."While demand remains strong, management expected internal wafer supply constraints to be most acute in (the first quarter) which could limit near-term upside," Pajjuri wrote. "Recent media reports point to Intel raising prices which should help."For the current quarter, RBC expects Intel to issue an outlook above Wall Street's estimates of $13.1 billion in revenue and adjusted EPS of $0.09, driven by server CPU demand and improving wafer supply.The data center and AI business is projected to see sequential growth of 10% in the second quarter, with RBC seeing potential upside amid improving supply and healthy pricing. The brokerage expects server demand to continue to benefit from agentic AI and sees industry supply remaining "tight" through 2026, it said in the note.RBC maintained its sector perform rating on Intel's stock with a $48 price target.The company's shares were up 0.3% in Tuesday afternoon trade, bringing its year-to-gains to nearly 79%.Last year, the US government agreed to invest $8.9 billion in Intel's common stock as part of a deal to secure a stake in the company. Separately, Nvidia (NVDA) agreed to inject $5 billion in Intel under a collaboration that aims to develop new data center and PC chips.Price: $66.04, Change: $+0.34, Percent Change: +0.52%

$INTC$NVDA
Australia

Scholastic Reports Preliminary Results of Dutch Auction Tender Offer

Scholastic (SCHL) on Tuesday announced preliminary results from its modified Dutch auction tender offer, which closed on Monday.The company said that shareholders tendered a total of about 2.85 million shares at or below the $40 per share purchase price, including about 1 million shares that were tendered by notice of guaranteed delivery.Based on the preliminary count, Scholastic expects to purchase all properly tendered shares at $40 each, for a total cost of about $114.1 million, excluding fees and expenses, it added.The company said that following completion of the offer, it expects nearly 17.9 million shares to remain outstanding, representing a reduction of about 13.7% in its share count.Shares of Scholastic rose 2.3% in the session.Price: $40.69, Change: $+0.93, Percent Change: +2.34%

$SCHL
Sectors

Sector Update: Financial

Financial stocks were declining in Tuesday afternoon trading, with the NYSE Financial Index decreasing 0.7% and the State Street Financial Select Sector SPDR ETF (XLF) off 0.6%.The Philadelphia Housing Index was adding 0.6%, and the State Street Real Estate Select Sector SPDR ETF (XLRE) fell 1.8%.Bitcoin (BTC-USD) was decreasing 0.9% to $75,117, and the yield for 10-year US Treasuries was rising 5 basis points to 4.30%.In corporate news, Coinbase (COIN) and Gemini Titan have been sued by New York Attorney General Letitia James for allegedly violating the state laws against against illegal gambling with their prediction markets, Reuters reported, citing complaints filed in a state court in Manhattan. Coinbase shares fell nearly 7%.

$COIN