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Market Chatter: China's Private Refiners Weigh Production Cuts

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China's private oil refiners face imminent run cuts as a US naval blockade throttles discounted crude imports from Iran and Venezuela while oil prices surge, according to a Bloomberg report on Wednesday, citing analysts.

Squeezed margins and rapidly depleting inventories threaten to further depress crude imports from the world's top buyer, the report added.

Brent crude futures hit $100 per barrel on Wednesday, while Oman crude front-month swaps climbed to their highest since early April, driven by Houthi attacks on Saudi Arabia, persistent Hormuz tensions, and strong Chinese buying, Reuters columnist Ron Bousso noted in a social media post.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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Oil & Energy

Market Chatter: US Forces Strike Near Kharg Island, Target Tanker; Iran Warns Of Retaliation

US forces carried out strikes near Kharg Island, targeting an Iranian oil tanker about 4 miles offshore, as explosions were also reported 12 kilometers from the island, Mehr News Agency reported Tuesday, citing Tasnim News.Tasnim said US forces struck the tanker with a projectile near the Kharg Island anchorage, citing local sources who reported the incident.Local sources said the attack caused no casualties, while the tanker's crew evacuated the vessel as authorities began assessing the incident, according to the report.US Central Command struck targets near Iran's Kharg Island and Jask on Tuesday, including Iranian oil tankers, Fox News reported Tuesday, citing a US official.Explosions were heard near Kharg Island, while a tanker came under attack about 12 kilometers from the island's shoreline, according to the reports.Following the reported strike, Iranian Armed Forces Chief of General Staff Ali Abdollahi warned in a social media post that Iran would target US bases in the region if US forces attack its oil tankers."The aggressor US military has issued an evacuation warning to Iranian oil tankers in order to strike them. Therefore, I declare that any aggression against Iranian oil tankers will result in US bases in the region being targeted by the Armed Forces of the Islamic Republic of Iran," Abdollahi said.US Central Command and Iran's Ministry of Foreign Affairs did not immediately reply to' request for comment.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Oil & Energy

US Oil Update: Futures Settle Higher as Mideast Conflict Fuels Supply Fears

Crude oil futures settled higher in after-hours trading on Tuesday as the round of strikes on ships and Middle East energy infrastructure, including reported explosions at Iran's vital export hub Kharg Island, stoked fears of fresh supply tightness.Front-month West Texas Intermediate futures gained 2.7% to $93.09 per barrel, while Brent futures climbed 2% to $97.01/bbl.ING strategists said on Monday that the oil market remains well-supported with little sign of peace between the US and Iran.On Tuesday, the US military reportedly struck targets near Kharg Island and the port city of Jask, said in a post on X that the targets included Iranian oil tankers and characterized it as part of a broader effort to force Tehran to capitulate.Fueling bullish sentiment, Saudi Arabia's Foreign Affairs Ministry said Yemen's Houthis targeted civilian and economic assets in the cities of Abha, Khamis Mushait, Jazan and Najran. More than 70 civilians were injured in the attacks, the ministry said.The ministry said that the attacks caused fires at several energy facilities, resulting in temporary shutdowns, and emergency services are working to contain fires at the sites.The Houthis, in a statement, said that they targeted Saudi Aramco facilities in southern areas with drones and ballistic missiles.Iran's Islamic Revolution Guards Corps said on Tuesday that Iranian forces remain firmly in control of the Strait of Hormuz. The IRGC also said that it intercepted and captured an unmanned American submarine at the entrance of the strait.President Trump said on Monday that oil prices would fall sharply once the US wins its war with Iran, predicting US gasoline prices could eventually drop below $2 per gallon."Oil prices will drop precipitously" after the war, Trump said in a post on Truth Social. The US President forecasted that gasoline prices would fall to $3 per gallon and ultimately below $2, adding that the decline would happen quickly.Tempering the gains, Iranian Foreign Minister Abbas Araghchi said "significant progress" has been made in talks with Oman over a temporary transit route through the Hormuz.Esmail Baghaei, spokesman for Iran's Foreign Ministry, said on Monday that the agreement, which the two countries have been negotiating for several weeks, is in the final stages and will include details on a temporary safe route through the strategic waterway.Bjarne Schieldrop, chief commodities analyst at SEB Research, said that the Iran-Oman agreement over how to operate the SoH is just days away from finalization says Iran. The IMO and the US are said to have been involved in the process, Schieldrop said.

Oil & Energy

McDermott Wins First Eni Subsea Award For Cyprus Cronos Gas Field

McDermott won a subsea contract from Eni Cyprus (E) for the Cronos gas field offshore Cyprus, marking its first subsea award from Eni and strengthening its position in the Eastern Mediterranean, it said Tuesday.The contract covers project management, engineering, procurement and installation support for the offshore Cronos gas field development.McDermott will draw on teams in Houston, Perth, London and Kuala Lumpur to execute the work, with support from its marine construction fleet."Our global execution teams, supported by reliable local partnerships, will help advance the Cronos development safely and efficiently," said Mahesh Swaminathan, McDermott's senior vice president, subsea and floating facilities."This award demonstrates the strength of McDermott's integrated subsea engineering, procurement, construction and installation capabilities and reflects the value we bring through our technical expertise and differentiated deepwater asset, the Amazon," Swaminathan added.Price: $54.89, Change: $+1.31, Percent Change: +2.44%

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