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Oil Falls on Reports Iran-US Talks May Resume Despite Continued Fighting

Oil prices fell early Monday on reports that talks between Iran and the US may resume, even as the two sides continued to exchange attacks.West Texas Intermediate crude for August delivery was last down $1.52, or 1.8%, at $80.97 a barrel, while September Brent crude fell $1.19, or 1.4%, to $86.91.The decline followed reports that Iran remains open to a negotiated settlement to the war launched by the US and Israel on Feb. 28, The Guardian reported. Iranian officials said mediators continue to exchange messages aimed at ending the conflict, while US Secretary of State Marco Rubio said he is open to fresh talks.Fighting still continued over the weekend, with Iran striking ships transiting the Strait of Hormuz and the US attacking targets in Iran. The conflict has left ships trapped inside the Persian Gulf, disrupting traffic through the Strait of Hormuz, the key chokepoint for exports from Persian Gulf producers that supplied about one-fifth of global oil demand before the war.Shipping through the Strait has almost stalled amid the fighting, with hormuzstraitmonitor.com reporting just four ships have moved through the waterway over the past day, leaving 490 ships, including 175 tankers, trapped and waiting for a peace deal that is likely to favor Iran."Little has changed from the underlying fundamentals prevailing earlier in the conflict. Iran's leaders fear a disadvantageous peace more than a disadvantageous war, risking a prolonged conflict even at greater long-term economic cost. A more constructive-leaning take on the recent fighting is that this represents a last-ditch US attempt to find a geopolitical hook to avoid a strategic defeat, before accepting a reopened Strait under some Iranian influence," Erik Meyersson, Chief EM Strategist at SEB Research wrote.

Update: WTI Oil Rises as Fresh Middle East Fighting Keeps the Strait of Hormuz Closed

(Updates prices in the second paragraph.)West Texas Intermediate (WTI) crude oil closed at a five-week high on Friday as fresh fighting between the US and Iran kept the Strait of Hormuz closed.WTI crude oil for August delivery closed up 4.5% to settle at $82.49 per barrel, the highest since June 12, while September Brent crude was last seen up 4.4% to $87.96.The gains followed reports that US forces struck bridges around Iran's port city of Bandar Abbas, according to The Wall Street Journal. Iran responded with attacks on neighboring countries and strikes on ships in the Persian Gulf.The fresh fighting is keeping the Strait of Hormuz closed, the chokepoint for 20% of daily oil demand supplied by Persian Gulf nations prior to the Feb. 28 start to the war. About 285 ships remain trapped in the Persian Gulf, according to hormuzstraitmonitor.com, with 10 ships moving through the Strait in the past day."Crude oil extended its rally, with Brent climbing back above USD 85 a barrel as energy and refined fuel flows through the Strait of Hormuz continues to slow amid the escalating conflict between the US and Iran. The renewed disruption has interrupted the recent recovery in regional supply, reviving concerns about tighter global markets," Saxo Bank noted.

Oil Rises as Fresh Middle East Fighting Keeps the Strait of Hormuz Closed

Oil traded higher early on Friday as fresh fighting between the US and Iran kept the Strait of Hormuz closed.West Texas Intermediate crude oil for August delivery was last seen up 2.5% at $80.94 per barrel, while September Brent crude was up 2.3% at $86.16.The gains followed reports that the US struck bridges around Iran's port city of Bandar Abbas, according to The Wall Street Journal. Iran responded with attacks on neighboring countries and strikes on ships in the Persian Gulf.The fresh fighting is keeping the Strait of Hormuz closed, the chokepoint for 20% of daily oil demand supplied by Persian Gulf nations prior to the Feb. 28 start to the war. About 285 ships remain trapped in the Persian Gulf, according to hormuzstraitmonitor.com, with 10 ships moving through the Strait in the past day."Crude oil extended its rally, with Brent climbing back above USD 85 a barrel as energy and refined fuel flows through the Strait of Hormuz continues to slow amid the escalating conflict between the US and Iran. The renewed disruption has interrupted the recent recovery in regional supply, reviving concerns about tighter global markets," Saxo Bank noted.

Update: WTI Oil Edges Down Even as Iran Conflict Keeps Strait of Hormuz Shut

(Updates prices in the second paragraph.)West Texas Intermediate (WTI) closed lower for the first time in four sessions on Thursday, even as escalating violence between the US and Iran is keeping the Strait of Hormuz closed.WTI crude oil for August delivery closed down 0.8% to settle at $78.95 per barrel, falling off the highest since June 15, while September Brent oil was last seen down 0.8% to $84.72.US forces continued to strike Iran as they seek to eliminate the country's ability to threaten vessels passing through the Strait of Hormuz, a key chokepoint that carried about 20% of global oil supplies before the war began on Feb. 28.The Guardian reported the US launched strikes on the port city of Bandar Abbas as well as targets near Tehran and a tanker ignoring the US blockade of Iranian ports, while Iran responded with attacks on Bahrain, Kuwait and Jordan.The fresh fighting is keeping ships trapped in the Persian Gulf, leaving Asian nations struggling for supply. Just 10 ships moved through the Strait of Hormuz in the past day, according to hormuzstraitmonitor.com, 17% of normal traffic through the waterway."Crude oil steadied after a three-day rally, with Brent trading around USD 85, suggesting the recent wave of short covering that helped fuel the advance may have largely run its course for now. Nevertheless, escalating Middle East tensions continue to raise concerns about energy flows from the region, prompting the IEA to warn that a prolonged disruption could have a meaningful impact on the global economy," Saxo Bank wrote.

NYMEX WTI Crude August futures settle at $78.95 a barrel, down 65 cents, 0.82%

Oil Extends Rally for Fourth Session as Iran Conflict Keeps Strait of Hormuz Shut

Oil prices edged higher early Thursday, rising for a fourth straight session as escalating violence between the U.S. and Iran kept the Strait of Hormuz closed.West Texas Intermediate crude oil for August delivery was last seen up 0.5% to $79.96 per barrel, the highest since June 15, while September Brent oil was up 0.1% to $85.06.U.S. forces continued to strike Iran as they sought to eliminate the country's ability to threaten vessels passing through the Strait of Hormuz, a key chokepoint that carried about 20% of global oil supplies before the war began on Feb. 28.The Guardian reported the US launched strikes on the port city of Bandar Abbas as well as targets near Tehran and a tanker ignoring the US blockade of Iranian ports, while Iran responded with attacks on Bahrain, Kuwait and Jordan.The fresh fighting is keeping ships trapped in the Persian Gulf, leaving Asian nations struggling for supply. Just 10 ships moved through the Strait of Hormuz in the past day, according to hormuzstraitmonitor.com, 17% of normal traffic through the waterway.The escalating fighting is keeping supply tight, pushing price up 11% since the fighting restarted on the weekend amid fears of rising inflation and slower growth."Crude oil steadied after a three-day rally, with Brent trading around USD 85, suggesting the recent wave of short covering that helped fuel the advance may have largely run its course for now. Nevertheless, escalating Middle East tensions continue to raise concerns about energy flows from the region, prompting the IEA to warn that a prolonged disruption could have a meaningful impact on the global economy," Saxo Bank wrote.

Update: WTI Oil Edges Up to a Fresh Month High as Middle East Fighting Intensifies

(Updates prices in the second paragraph and and EIA storage data in the final paragraph.)West Texas Intermediate (WTI) crude oil rose to a one-month high on Wednesday as fighting between the US and Iran intensified, keeping the Strait of Hormuz blocked.WTI crude oil for August delivery closed up $0.26, or 0.3%, to settle at $79.71 per barrel, the highest since June 15, while September Brent oil was last seen down $0.02, or 0.02%, to $84.71.WTI's rise comes as the US and Iran continue to trade attacks after the pair last week walked away from their ceasefire agreement. The US launched a fresh series of missile strikes on Iranian targets while Iran responded with strikes on US targets in neighboring countries, the Guardian reported.The renewed fighting is again keeping the Strait of Hormuz closed, choking off exports from the Persian Gulf, which supplied 20% of daily oil demand prior to the Feb. 28 start to the war. Just 19 ships have moved through the Strait in the past day, according to hormuzstraitmonitor.com, leaving hundreds of vessels still waiting to move out into the Gulf of Oman and onto world markets."Oil prices trade higher for a third day after Trump threatened further strikes on Iran, hours after the US resumed its blockade on Iran's shipping through the Strait of Hormuz. Meanwhile, Trump's U-turn on plans to impose a 20% charge on shipments through the waterway briefly sent prices lower before the resumption of attacks," Saxo Bank noted.In its weekly report, the Energy Information Administration said US commercial oil inventories fell by 1.7-million barrels last seek, leaving stocks at 6% below the five-year average for the period.

August WTI Crude Oil Contract Closes up $0.26, or 0.3%; Settles at $79.60 per Barrel

Oil Edges Up to a Fresh Month High as Middle East Fighting Intensifies

Oil edged higher to the highest in a month early on Wednesday as fighting between the US and Iran intensified, keeping the Strait of Hormuz blocked again.West Texas Intermediate crude oil for August delivery was last seen up $0.37, or 0.5%, to $79.71 per barrel, the highest since June 15, while September Brent oil was up $0.50, or 0.6%, to $85.23.The rise comes as the US and Iran continue to trade attacks after the pair last week appeared to walk away from their ceasefire agreement. The US launched a fresh series of missile strikes on Iranian targets while Iran responded with strikes on US targets in neighboring countries, the Guardian reported.The renewed fighting is again keeping the Strait of Hormuz closed, choking off exports from the Persian Gulf, which supplied 20% of daily oil demand prior to the Feb. 28 start to the war. Just 19 ships have moved through the Strait in the past day, according to hormuzstraitmonitor.com, leaving hundreds of vessels still waiting to move out into the Gulf of Oman and onto world markets."Oil prices trade higher for a third day after Trump threatened further strikes on Iran, hours after the US resumed its blockade on Iran's shipping through the Strait of Hormuz. Meanwhile, Trump's U-turn on plans to impose a 20% charge on shipments through the waterway briefly sent prices lower before the resumption of attacks," Saxo Bank noted.A lighter than expected drop in US oil inventories last week is offering a check to prices. In its weekly survey, the American Petroleum Institute reported stocks dropped by 0.6-milllion barrels last week, under expectations for a fall of 2.7-million barrels, according to Investing.com. The Energy Information Administration will release official storage data later on Wednesday morning.

Update: WTI Oil Extends Rally as US-Iran Fighting Threatens Persian Gulf Supply

(Updates prices in the second paragraph.)West Texas Intermediate (WTI) crude oil rose for a second day on Tuesday as renewed fighting between the US and Iran again threatens to keep Persian Gulf supply off the market.WTI crude oil for August delivery closed up $1.20, or 1.5%, to settle at $79.34 per barrel, the highest since June 15, while September Brent oil was last seen up $1.34, or 1.6%, to $84.64.Oil is now up 11% in the past two days after Iran and the US renewed fighting on the weekend as they dispute control over the Strait of Hormuz, the chokepoint for 20% of daily oil demand supplied by Persian Gulf nations prior to the Feb. 28 start to the war.Iran attacked three tankers in the Strait and launched strikes against US targets in neighboring countries overnight, the Wall Street Journal reported, while the US carried out five hours of strikes on Iranian targets and re-imposed a blockade of Iranian ports.Iran has again declared the Strait closed, while the US President Trump on Monday said it remains open while announcing plans to impose a 20% toll on shipping through the waterway as a protection fee.The fighting has again kept shipping through the Strait limited, with hormuzstraitmonitor.com reporting just 11 ships have move through the waterway in the past 24 hours, under the daily average of 60 ships."Oil prices jumped almost 10% on Monday - their biggest one-day gain in more than three months - after President Trump reinstated the blockade on Iran and demanded a 20% toll on all cargo passing through the Strait of Hormuz. Brent extended its advance during the Asian session, rising a further 1.1% to USD 85 per barrel for the first time in a month, supported by short covering from wrong-footed traders and renewed concerns over Persian Gulf supply," Saxo Bank wrote.

August WTI Crude Oil Contract Closes Up $1.20, or 1.5%; Settles at $79.34 per Barrel

Oil Extends Rally as US-Iran Fighting Threatens Persian Gulf Supply

Oil rose for a second day early Tuesday as renewed fighting between the US and Iran again threatens to keep Persian Gulf supply off the market.West Texas Intermediate crude oil for August delivery was last seen up $1.66, or 2.1%, to $79.80 per barrel, the highest since June 15, while September Brent oil was up $2.67, or 3.2%, to $85.97.Oil is now up 12% in the past two days after Iran and the US renewed fighting on the weekend as they dispute control over the Strait of Hormuz, the chokepoint for 20% of daily oil demand supplied by Persian Gulf nations prior to the Feb. 28 start to the war.Iran attacked three tankers in the Strait and launched strikes against US targets in neighboring countries overnight, the Wall Street Journal reported, while the US carried out five hours of strikes on Iranian targets and re-imposed a blockade of Iranian ports.Iran has again declared the Strait closed, while the US President Trump on Monday said it remains open while announcing plans to impose a 20% toll on shipping through the waterway as a protection fee.The fighting has again kept shipping through the Strait limited, with hormuzstraitmonitor.com reporting just 11 ships have move through the waterway in the past 24 hours, under the daily average of 60 ships."Oil prices jumped almost 10% on Monday - their biggest one-day gain in more than three months - after President Trump reinstated the blockade on Iran and demanded a 20% toll on all cargo passing through the Strait of Hormuz. Brent extended its advance during the Asian session, rising a further 1.1% to USD 85 per barrel for the first time in a month, supported by short covering from wrong-footed traders and renewed concerns over Persian Gulf supply," Saxo Bank wrote.

August WTI Crude Oil Contract Closes Up $6.73, or 9.4%; Settles at $78.14 per Barrel

Update: WTI Oil Falls as Renewed Iran-US Fighting Keeps Persian Gulf Supply Disrupted

(Updates prices in the second paragraph.)West Texas Intermediate (WTI) crude oil closed lower Friday as fighting between the U.S. and Iran continues, while some ships continue to move out of the Persian Gulf through the Strait of Hormuz, boosting supply.WTI crude oil for August delivery closed down $0.67, or 0.9%, to settle at $71.41, while September Brent oil was last seen down $0.42, or 0.6%, to $75.88.The drop comes as Iran and the U.S. renew hostilities, though fighting eased overnight. The apparent end to a ceasefire agreement reached last month is continuing to keep ships trapped in the Persian Gulf since the Feb. 28 start to the war. Only 15 ships moved through the Strait of Hormuz yesterday, according to hormuzstraitmonitor.com, leaving 280 vessels still waiting to move through the waterway.However enough ships left the region since the mid-June ceasefire agreement to ease supply worries. In its monthly Oil Market Report, the International Energy Agency said June oil inventories rose for the first time since the start of the war as shipping through the Strait surged following the ceasefire."As an armada of tankers set sail for refining hubs further afield, global observed oil inventories in June rose for the first time since the outbreak of the war. Oil on water swelled by 117 mb (million barrels), far outpacing continued drawdowns in onshore stocks of some 96 mb, including 44 mb of OECD government reserves," the agency said.The IEA said global oil supply rose by 4.1-million barrels per day in June following the release of some Persian Gulf supply to 98.8-million bpd. Demand, which dropped by 4.8-million bpd in the second quarter, is expected to continue to contract in the third quarter on light supply and high prices, though is expected to rise by 1.2-million bpd in the fourth quarter.

July WTI Crude Oil Contract Closes Down $0.67, or 0.9%; Settles at $71.41 per Barrel

Oil Rises as Renewed Fighting Between Iran and the US Keeps Persian Gulf Supply Shut In

Oil moved higher early Friday as fighting between the U.S. and Iran continues, while some ships continue to move out of the Persian Gulf through the Strait of Hormuz, boosting supply.West Texas Intermediate crude oil for August delivery was last seen up $0.61, or 0.9%, to $72.69, while September Brent oil was up $0.72, or 0.9%, to 77.02The rise comes as Iran and the U.S. renew hostilities, though fighting eased overnight. The apparent end to a ceasefire agreement reached last month is continuing to keep ships trapped in the Persian Gulf since the Feb. 28 start to the war. Only 15 ships moved through the Strait of Hormuz yesterday, according to hormuzstraitmonitor.com, leaving 280 vessels still waiting to move through the waterway.However enough ships left the region since the mid-June ceasefire agreement to ease supply worries. In its monthly Oil Market Report, the International Energy Agency said June oil inventories rose for the first time since the start of the war as shipping through the Strait surged following the ceasefire."As an armada of tankers set sail for refining hubs further afield, global observed oil inventories in June rose for the first time since the outbreak of the war. Oil on water swelled by 117 mb (million barrels), far outpacing continued drawdowns in onshore stocks of some 96 mb, including 44 mb of OECD government reserves," the agency said.The IEA said global oil supply rose by 4.1-million barrels per day in June following the release of some Persian Gulf supply to 98.8-million bpd. Demand, which dropped by 4.8-million bpd in the second quarter, is expected to continue to contract in the third quarter on light supply and high prices, though is expected to rise by 1.2-million bpd in the fourth quarter.

Update: WTI Oil Falls Despite Renewed Fighting Between the US and Iran

West Texas Intermediate (WTI) crude oil closed lower on Thursday even as renewed fighting between the U.S. and Iran threatens to keep the Strait of Hormuz closed, again shutting in tankers bringing Persian Gulf supply to the market.WTI crude oil for August delivery closed down $1.44, or 2%, to settle at $72.08 per barrel, while September Brent oil was last seen down $1.72, or 2.2%, to $76.30.The drop comes as the U.S. war on Iran again heated up, with the US President Trump on Wednesday declaring a ceasefire agreement reached last month was over. The U.S. hit 90 targets in Iran, according to the Wall Street Journal, while Iran retaliating by striking at US military bases in Kuwait and elsewhere. The US also reapplied sanctions on Iranian oil exports lifted last month.The revived hostilities are threatening to again close the Strait of Hormuz, the choke point for 20% of daily oil demand supplied by Persian Gulf nations prior to the Feb. 28 start to the war. Still, ships are continuing to move through the Strait, with hormuzstraitmonitor.com reporting 34 ships moved through the waterway over the past day."Traffic through the Strait of Hormuz slowed to a crawl, with most movements occurring along an Iran-approved route closer to the waterway's northern side, while the US-backed Omani corridor where recent Iranian attacks occurred remained quiet," Saxo Bank wrote.

July WTI Crude Oil Contact Closes Down $1.44, or 2%; Settles at $72.09 per Barrel

Oil Prices Rise on Renewed Fighting Between the US and Iran

Oil rose for a third day early Thursday as renewed fighting between the U.S. and Iran threatens to keep the Strait of Hormuz closed, again shutting in tankers bringing Persian Gulf supply to the market.West Texas Intermediate crude oil for August delivery was last seen up $0.41, or 0.6%, to $73.93 per barrel, while September Brent oil was up $0.55, or 0.7%, to $78.57.The rise comes as the US war on Iran again heated up, with the U.S. President Trump on Wednesday declaring a ceasefire agreement reached last month was over. The U.S. hit 90 targets in Iran, according to the Wall Street Journal, while Iran retaliating by striking at US military bases in Kuwait and elsewhere. The US also reapplied sanctions on Iranian oil exports lifted last month.The revived hostilities are threatening to again close the Strait of Hormuz, the choke point for 20% of daily oil demand supplied by Persian Gulf nations prior to the Feb. 28 start to the war. Still, ships are continuing to move through the Strait, with hormuzstraitmonitor.com reporting 34 ships moved through the waterway over the past day."Brent trades near USD 79 after jumping on renewed US strikes on Iran, raising fresh concerns about energy supplies from the Middle East. Traffic through the Strait of Hormuz slowed to a crawl, with most movements occurring along an Iran-approved route closer to the waterway's northern side, while the US-backed Omani corridor where recent Iranian attacks occurred remained quiet," Saxo Bank wrote.

Update: WTI Oil Rises as Iran-US Fighting Resumes, Trump Says Ceasefire Is Over

(Updates prices in the second paragraph and adds EIA data in the final paragraph.)West Texas Intermediate (WTI) closed higher on Wednesday as the U.S. and Iran traded attacks, with President Trump saying the ceasefire deal reached last month is over.WTI crude oil for August delivery closed up $3.08, or 4.4%, to settle at $73.52 per barrel, the highest since June 18, while September Brent oil was last seen up $3.80, or 5.1%, to $77.96.The rise comes as the U.S. renewed attacks on Iran on Tuesday following Iranian strikes on ships moving through the Strait of Hormuz. Trump told reporters at the NATO summit in Turkey the ceasefire agreement between the two countries is "over". The U.S. on Tuesday also re-imposed sanctions on Iranian oil exports that were lifted after the June 18 ceasefire deal."The latest rally followed US strikes on targets in Iran and Washington's decision to revoke a waiver allowing new sales of Iranian oil, in response to attacks on commercial shipping in the Strait of Hormuz. The escalation threatens fragile negotiations aimed at securing a permanent peace, with both sides accusing the other of violating the ceasefire," Ole Hansen, head of commodity strategy at Saxo Bank.Despite renewed fighting, ships trapped in the Persian Gulf since the start of the war have continued to move through the Strait of Hormuz, with hormuzstraitmonitor.com reporting 25 ships moved through the waterway in the past day.In its weekly report, the Energy Information Administration reported U.S. commercial oil inventories rose by 5.6-milllion barrels last week, the first rise in 11 weeks. Analysts polled by Investing.com expected the agency to report a drop on 1.9-million barrels.