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Market Chatter: LNG Flows Through Strait of Hormuz Show Signs of Recovery; 2 Cargoes Cross

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Liquefied natural gas flows through the Strait of Hormuz showed signs of recovery this week, with at least two cargoes moving through the waterway, Bloomberg reported Friday, citing satellite images and shipping data.

A Qatar-loaded tanker left Ras Laffan in late August and appeared in the Gulf of Oman this week, with ship-tracking data indicating it crossed Hormuz, although the vessel was not transmitting a signal during the transit.

Satellite imagery showed two LNG carriers transferring cargo between vessels off Oman this week, although the satellite data became available only after a delay.

QatarEnergy 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.)

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Oil & Energy

US Oil Update: Crude Settles Lower as Saudi Rerouting Eases Supply Fears

Crude futures retreated in after-hours trading on Thursday after reports that Saudi Arabia is rerouting crude exports through Oman amid expectations that its East-West pipeline could return to service eased fears of a prolonged supply disruption.Front-month West Texas Intermediate futures fell 1.31% to $101.09 per barrel, while Brent futures retreated 1.83% to $103.89/bbl.Gelber & Associates strategists said October WTI trades at $100.78/bbl, down 1.6%, as Saudi Arabia offers additional Asian cargoes through ship-to-ship transfers via Oman, reducing the immediate risk that pipeline damage will strand exports.The US Energy Information Administration said in its weekly report commercial crude oil inventories decreased by 600,000 barrels to 423.4 million barrels in the week ended Sept. 11.Crude inventories are 1% above the five-year average, the EIA said. The draw contrasted with a 7.1 million-barrel American Petroleum Institute build reported for the same period.On the supply front, the growing tightness in diesel markets, including in the US, China and Russia, has raised speculation about possible US export controls on crude oil and refined products.Average US retail price for regular gasoline rose 16 cents over the past week to $4.43 per gallon, the American Automobile Association said in a Thursday note, as elevated crude prices and continued volatility around the Strait of Hormuz pushed fuel costs higher.Tom Kloza, chief energy adviser at Gulf Oil, said that diesel prices surged to a record $6.39 per gallon on Thursday, surpassing the previous high set in June 2022.The combined price of a gallon of diesel and a gallon of gasoline also climbed to a record $10.83, exceeding the previous June 2022 peak of $10.80, Kloza said. US gasoline prices stood at $4.44 per gallon.Saudi Arabia is reportedly seeking to restore about half the capacity of its East-West pipeline within days following drone attacks that damaged pumping stations last week.The Gulf state has also offered additional crude cargoes to Asian refiners through ship-to-ship transfers off Oman's Sohar port, according to media reports, providing an alternative route for barrels affected by the disruption.Soojin Kim, research analyst at MUFG, said that a faster restoration of Saudi pipeline capacity could ease physical-market pressures, though constrained Hormuz flows and continued Russian supply disruption will keep crude prices elevated.On Wednesday, Secretary Wright said 18 million barrels of crude and refined products moved through the Strait of Hormuz on Tuesday with US assistance, during a Fox News interview. The US Department of Energy confirmed the remarks in an emailed response to.Meanwhile, the US sanctioned an Iranian cryptocurrency exchange controlled by sanctioned Iranian financier Babak Zanjani on Thursday, accusing it of processing payments for ships to transit safely through the Strait of Hormuz.The US Treasury Department said the bank routed hundreds of millions of dollars to the Islamic Revolutionary Guard Corps and used it to transfer funds paid to Iran's newly established Hormuz Safe Marine Services Authority.The US military has also continued efforts to control maritime traffic around Iran. The US Central Command said in a post on X on Thursday that it had redirected 104 commercial vessels to ensure compliance with Washington's blockade, as of Sept. 17.

Oil & Energy

Hormuz Traffic at Reduced Levels Amid Regional Tensions

Commercial shipping traffic through the Strait of Hormuz remained constrained on Thursday as heightened tensions and recent tanker attacks continued to weigh on vessel movements through the key energy chokepoint.The latest data from Windward showed 15 vessels crossed the strait on Thursday, comprising eight inbound and seven outbound transits, underscoring the limited movement through the strategic waterway.The UK Maritime Trade Operations received a report involving an unknown projectile at an unspecified location in the Hormuz. No damage or pollution was reported.The UKMTO said that activity by Iran's Islamic Revolutionary Guard Corps, including attempted attacks and harassment, continues. The agency said that such activity has maintained pressure on commercial shipping and contributed to lower traffic through the strait.Meanwhile, data from the US Naval Forces Central Command indicated average traffic of about 30 vessel transits per day over the previous 96 hours.The UKMTO said that differing estimates reflect the challenges of tracking vessels in a high-risk environment where some ships may reduce or switch off their tracking signals.The US military has also continued efforts to control maritime traffic around Iran. The US Central Command said the US Army had redirected 104 commercial vessels to ensure compliance with Washington's blockade, as of Sept. 17.UKMTO reported no confirmed attacks or disruptions in the southern Red Sea and Bab el-Mandeb.Houthi forces remain in control of Yemen's coastline and islands commanding the eastern approaches to the Bab el-Mandeb, including the areas around Mocha, Dhubab, Mayun, Zuqar and Hanish, following seizures between Sept. 10 and 12.Commercial traffic through the waterway has remained below normal levels following a Houthi embargo declaration on July 20 and the group's territorial gains.

Oil & Energy

Upstream M&A Heads Toward $175 Billion as Oil Volatility Complicates Deals, Rystad Says

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