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US Oil Update: Futures Settle Lower After Trump Says US-Iran Talks Going Well

Crude oil futures settled lower in after-hours trading on Wednesday after President Trump said talks between the US and Iran were progressing well, easing concerns over potential supply disruptions, while a draw in US crude stockpiles further pressured the market.Front-month West Texas Intermediate crude futures fell 2.1% to $68.02 per barrel, while Brent futures dropped 2.5% to $71.16/bbl.US commercial crude oil inventories decreased by 3.8 million barrels to 408.4 mmbbls in the week ended June 26, the Energy Information Administration said in its weekly report on Wednesday. The decline is less than Macquarie's forecast of a 5.5-mmbbl draw for the week ending June 26.On Wednesday, Trump said that the US was getting along very well with Iran and that recent meetings in Qatar went well. The US President told reporters that the two sides had very constructive meetings, "and we'll see how it develops," adding that crude prices have come down significantly, now at about $68/bbl.The technical talks in Qatar come after tit-for-tat military strikes between the US and Iran over the weekend, which threatened to jeopardize a 60-day truce between the two countries.Soojin Kim, research analyst at MUFG, said progress in indirect negotiations has supported a gradual recovery in shipping via the Hormuz, while Iranian exports have increased following the easing of maritime restrictions.US special envoy Steve Witkoff and Trump's son-in-law, Jared Kushner, held positive talks in Doha to ease the Middle East conflict and held technical talks as the two sides seek to reach an agreement on the flow of shipping through the Strait of Hormuz.Iran's Deputy Foreign Minister Kazem Gharibabadi led a delegation of representatives from Iran's foreign ministry, central bank and agriculture ministry, meeting Qatar's prime minister, Sheikh Mohammed bin Abdulrahman Al Thani and holding talks with mediators, according to local media.Gharibabadi reportedly said that working groups for the follow-up of the MoU's implementation and for negotiations towards a final agreement have been set up, "but no talks have yet taken place within these frameworks."Meanwhile, market sentiment is being bolstered by reports that tanker traffic through the Strait of Hormuz has begun to recover. US Vice President J D Vance reportedly said that oil flows through the strategic waterway have returned to pre-war levels.ING strategists said that the crude market continues to take an optimistic view of a supply recovery from the Persian Gulf, despite recent flare-ups between the US and Iran.The Strait recorded 34 verified crossings on June 30, according to MarineTraffic, with traffic evenly balanced at 17 vessels in each direction.However, route visibility remained "fragmented," with vessels using Iranian, Omani, International Maritime Organization, and dark or unknown routes, according to MarineTraffic.

Oil & Energy84d ago

European Crude Differentials Retreat as Supply Stays Robust, Kpler Says

European crude markets have shifted into contango as strong supply continues to pressure physical differentials, Kpler said in a note on Wednesday.A market in contango points toward surplus spot supply amid weak spot demand, reflecting bearish market sentiment. In a contango structure, futures prices trade higher than spot prices. In contrast, backwardation indicates strong near-term demand or tight spot supply, with futures prices trading below spot prices.Kpler expects Atlantic Basin crude differentials to remain under pressure, with additional downside possible if Strait of Hormuz shipments recover in July and the US sanctions waiver allows higher Iranian crude exports.The firm said rising production from Brazil, Guyana and Venezuela in the second half of 2026 could lift crude flows into Europe. It also expects Kazakh CPC Blend to retain its competitive advantage as the region's most economical light crude.Kpler said Europe relies on the Middle East for only 5% to 6% of its crude imports, or roughly 500,000 barrels per day, limiting the region's exposure to supply disruptions.As crude imports from the Middle East declined after disruptions in the Strait of Hormuz began in March, Europe increased purchases from the Americas.Imports from the Americas reached a record 3.9 million b/d in May before easing to 3.2 million b/d in June, led by stronger flows from the US, Brazil, Guyana, Mexico and Venezuela, according to the note.Europe also increased purchases of Kazakh CPC Blend, with imports averaging 1.3 million b/d between March and June, up 180,000 b/d from a year earlier. Kpler said the maintenance delay at the 400,000 b/d Kashagan field until next year also supported exports.High crude arrivals, combined with reduced refinery throughput caused by the European heatwave, labor strikes and low Rhine River water levels, kept European Union-27 crude inventories elevated at 337 million barrels in June, only 4 million barrels below the previous month, Kpler said.Alternative shipping routes, weaker crude demand and inventory drawdowns helped global oil markets absorb the US-Iran conflict, while progress toward a US-Iran deal and a 60-day US sanctions waiver for Iran pressured prices, Kpler said.The North Sea Dated Brent forward month M1-M3 spread reversed sharply, moving from a $6 per barrel backwardation early in the month to roughly $2/bbl contango by late June. Physical differentials across the North Sea, Mediterranean and West Africa also weakened toward pre-war levels.In the Mediterranean, CPC Blend traded at around $4/bbl below North Sea Dated on a cost, insurance and freight August basis.Azeri Blend fell to about $3/bbl above North Sea Dated, around half its late-May premium, while Es Sider traded close to parity with the benchmark through most of June.Kpler said CPC Blend remains the cheapest light crude option for refiners in the Mediterranean and Northwest Europe.The grade is expected to arrive in the Mediterranean at about $3.50/bbl below North Sea Dated Brent for September deliveries, compared with Es Sider at $1.55/bbl, Saharan Blend at $3.70/bbl, WTI Midland at $4.30/bbl and Johan Sverdrup at $7.85/bbl.

Oil & Energy84d ago

Market Chatter: US LNG Exports Tilt Toward Asia as Prices Outpace Europe

Asia claimed a larger share of US liquefied natural gas exports than Europe in June for the first time in almost two years as stronger regional pricing and robust Egyptian demand redirected cargoes, Reuters reported Wednesday, citing LSEG data.Europe received less than 42% of US LNG shipments during the month, down from more than half in May, while exporters steered additional cargoes toward Asia as spot prices there outpaced European benchmarks.Europe imported 4.41 million metric tons of US LNG in June, while Asia received 3.25 million mt, including a record 1.06 million mt delivered to Egypt, according to data.(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 & Energy84d ago

Market Chatter: Oil Transit Through Strait of Hormuz Tops 10 Million b/d

Oil shipments through the Strait of Hormuz have climbed above 10 million barrels per day as expanded US military support reassured commercial shippers and accelerated traffic through the key waterway, Bloomberg reported Wednesday, citing a US official.The official said President Donald Trump's interim accord with Iran helped drive the recovery, while Tehran's diminished ability to interfere with vessel movements encouraged operators to return. The official said US air and naval forces also steered more traffic toward the southern shipping lane near Oman.The report also said US officials want to turn the temporary shipping arrangement into a lasting framework before the 60-day negotiation window closes while keeping commercial vessels moving freely.The White House did not immediately respond 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 & Energy84d ago

US Oil Update: Futures Slide as Peace Talk Hopes Offset Bullish Crude Stock Draw

Crude futures fell in midday trading on Wednesday as markets balanced signs of progress in US-Iran peace negotiations in Doha with supply disruption fears, while a draw in US crude stockpiles further pressured the market.Front-month West Texas Intermediate crude futures slipped 1.8% to $68.24 per barrel, while Brent futures dropped 2.3% to $71.27/bbl.US commercial crude oil inventories decreased by 3.8 million barrels to 408.4 mmbbls in the week ended June 26, the Energy Information Administration said in its weekly report on Wednesday. The decline is less than Macquarie's forecast of a 5.5-mmbbl draw for the week ending June 26.Soojin Kim, research analyst at MUFG, said oil prices stabilized after recording their sharpest quarterly decline since the pandemic as improving prospects for a lasting US-Iran agreement continued to ease supply concerns.President Trump said on Wednesday that the US was getting along very well with Iran and that peace negotiations in Qatar went well. Trump told reporters that the two sides had very constructive meetings, "and we'll see how it develops," adding that crude prices have come down significantly, now at about $68/bbl.The technical talks in Qatar come after an exchange of military strikes between the US and Iran over the weekend, which threatened to jeopardize a 60-day truce between the two countries.US special envoy Steve Witkoff and Trump's son-in-law, Jared Kushner, held positive talks in Doha to ease tensions in the Middle East and held technical talks as the two sides seek to reach an agreement on the flow of shipping through the Strait of Hormuz.Iran's Deputy Foreign Minister Kazem Gharibabadi led a delegation of representatives from Iran's foreign ministry, central bank and agriculture ministry, meeting Qatar's prime minister, Sheikh Mohammed bin Abdulrahman Al Thani and holding talks with mediators, according to local media.Gharibabadi reportedly said that working groups for the follow-up of the MoU's implementation and for negotiations towards a final agreement have been set up, "but no talks have yet taken place within these frameworks."Kim said progress in indirect negotiations has supported a gradual recovery in shipping through the Strait of Hormuz, while Iranian exports have increased following the easing of maritime restrictions.Meanwhile, tanker traffic through the Hormuz has started to recover, with Vice President J D Vance reportedly saying that oil flows through the strategic waterway had returned to pre-war levels.The Strait recorded 34 verified crossings on June 30, according to MarineTraffic, with traffic evenly balanced at 17 vessels in each direction.However, route visibility remained "fragmented," with vessels using Iranian, Omani, International Maritime Organization, and dark or unknown routes, according to MarineTraffic.OPEC+ countries are set to agree on a further output hike from August, when the cartel meets on Sunday, adding supply at a time of falling prices amid the gradual reopening of the Strait of Hormuz.

Oil & Energy84d ago

EMEA Oil Update: Crude Drops as Markets Assess US-Iran Peace Talks Amid Supply Risks

EMEA crude futures declined in after-hours trading on Wednesday as markets weighed progress in US-Iran peace talks in Doha and US stockpiles, which fell below earlier estimates.Brent crude futures retreated by 2.2% to $71.33 per barrel, while Murban crude futures tumbled by 5.3% to $65.33/bbl.Saxo Bank strategists said that crude traded little changed near recent lows as the market continued to absorb the resumption of shipping through the Strait of Hormuz, raising concerns about short-term oversupply.President Trump said on Wednesday that the US was getting along very well with Iran and that peace negotiations in Qatar went well. The talks in Qatar come after tit-for-tat military strikes between the US and Iran over the weekend, which threatened to jeopardize a 60-day truce between the two countries.Trump's son-in-law, Jared Kushner, and US special envoy Steve Witkoff reportedly held positive talks in Doha to ease the Middle East conflict and held technical talks as the two sides seek to agree on the flow of shipping through the Strait of Hormuz.Iran's Deputy Foreign Minister Kazem Gharibabadi led a delegation of representatives from Iran's foreign ministry, central bank and agriculture ministry, meeting Qatar's prime minister, Sheikh Mohammed bin Abdulrahman Al Thani and holding talks with mediators, according to local media.Gharibabadi said that working groups for the follow-up of the MoU's implementation and for negotiations towards a final agreement have been set up, "but no talks have yet taken place within these frameworks."Soojin Kim, research analyst at MUFG, said progress in indirect negotiations has supported a gradual recovery in shipping via the Hormuz, while Iranian exports have increased following the easing of maritime restrictions.Tanker traffic through the Hormuz has started to recover, with Vice President J D Vance reportedly saying that oil flows through the strategic waterway had returned to pre-war levels.The Strait recorded 34 verified crossings on June 30, according to MarineTraffic, with traffic evenly balanced at 17 vessels in each direction.However, route visibility remained "fragmented," with vessels using Iranian, Omani, International Maritime Organization, and dark or unknown routes, according to MarineTraffic.Iranian state media said on Wednesday that a foreign container ship had run aground in the Strait after entering shallow waters outside the shipping route designated by Tehran.On the supply front, US commercial crude oil inventories decreased by 3.8 million barrels to 408.4 mmbbls in the week ended June 26, the Energy Information Administration said in its weekly report on Wednesday.Crude inventories are now about 7% below the five-year average for this time of year, the EIA said.OPEC+ countries are set to agree on a further output hike from August, when the producer cartel meets on Sunday, adding supply at a time of falling prices amid the gradual reopening of the Strait of Hormuz.

Oil & Energy84d ago

Trump Says Iran Has Come a Long Way, Stresses Denuclearization Goal

US President Donald Trump on Wednesday said Iran is "doing fine" under the nuclear memorandum of understanding and reiterated that Tehran cannot possess a nuclear weapon.Trump made the remarks while speaking to reporters at Joint Base Andrews."I think they've come a long way. We hit them very hard last week. I think they're fine," Trump said, while responding to a question about whether the US could return to an all-out war with Iran and Tehran's compliance with the memorandum of understanding.He reiterated that Iran's denuclearization was at the top of the agenda in ongoing negotiations. "It's the denuclearization of Iran. It's very simple. And Iran cannot have a nuclear weapon," Trump added, stressing that preventing Tehran from obtaining a nuclear weapon remains a US priority.Meanwhile, US and Iranian technical delegations are in Doha to advance the implementation of the memorandum of understanding, including discussions on nuclear issues, economic matters, security and shipping through the Strait of Hormuz, according to multiple media reports.Mediators are reportedly conducting the technical talks indirectly and no direct US-Iran meetings are scheduled in the coming days.Brent crude futures fell 2.15% to $71.38 per barrel, while US West Texas Intermediate crude declined 1.71% to $68.31/bbl amid ongoing developments in the Middle East.

Oil & Energy84d ago

US Oil Update: Crude Declines as Trump Hails Progress in Qatar

Crude benchmarks dipped more than 1% on Wednesday as positive diplomatic signals from Washington and Tehran alongside a massive crude stock draw shifted traders' attention toward the supply-demand balance.The Front-month Brent futures contract fell 1.5% to $71.89 per barrel. West Texas Intermediate crude futures fell nearly 1% to $68.83/bbl.Both contracts lost more than 20% on a month-over-month basis on June 30, and on a quarterly basis, the Brent futures contract has lost over 38%, while WTI dropped more than 31%.US President Donald Trump reportedly stated that discussions with Iran were going very well.Adding momentum to the diplomatic thaw, Iranian President Masoud Pezeshkian said via the Fars News Agency that certain international financial and foreign exchange restrictions on Iran have already been eased.Pezeshkian cited the sustained export of Iranian crude oil and newly unlocked avenues for global economic cooperation as direct, early results of these recent diplomatic understandings.While maritime transit has partially resumed through the reopened Strait of Hormuz, researcher Kpler reported on Tuesday that shipping corridors remain fraught with compliance risks.Commercial vessel operators find themselves caught between Iranian demands for tightly regulated or heavily tolled exits and strict retaliatory penalties from the US for complying with those local terms, Kpler said.On the supply side, data from the American Petroleum Institute revealed Tuesday that US crude oil inventories dropped by 6.072 million barrels in the week ended June 26, following a 765,000-barrel draw the previous week, according to a Bloomberg-compiled survey.The oil market now awaits the US Energy Information Administration's petroleum inventory report, scheduled for release on Wednesday.Elsewhere, Ukrainian long-range air strikes hit Russia's oil refinery complex, President Volodymyr Zelenskyy said in a post on X on Wednesday, an attack that will add further pressure on its foe now plagued by growing fuel shortages.

Oil & Energy84d ago

EMEA Oil Update: Oil Tumbles After Trump's Positive Signals on Doha Talks

Oil prices dipped on Wednesday following US President Donald Trump's comments noting that the indirect technical talks with Iran in Qatar had gone well.The Front-month Brent futures contract fell 1.4% at $71.92 per barrel. Murban futures fell nearly 4% to $66.29/bbl.Both contracts lost more than 20% on a month-over-month basis as of June 30, and on a quarterly basis, the Brent futures contract has lost over 38%, while Murban has dropped more than 26%.Speaking to reporters on Wednesday, Trump expressed strong optimism regarding the high-stakes, indirect technical talks taking place in Doha, Qatar.While the political gridlock clouds the timeline for a permanent peace treaty, the 60-day ceasefire remains active enough to allow logistics to flow, leaving the oil market focused squarely on the growing physical oversupply, analysts have said."Tanker vessel movements in the Strait of Hormuz still appear limited. Total tanker crossings, which include both inbound and outbound movements, are estimated at around 11 on Tuesday, down from a peak of 24 last Wednesday," ING analysts said."Admittedly, there has been a slight pickup in inbound tanker traffic, suggesting that shipowners are becoming increasingly confident about moving vessels into the Persian Gulf. If this trend accelerates, it becomes a clear headwind-and potentially a direct challenge-to our view that oil prices should rise from current levels," ING added.

Oil & Energy84d ago

Hormuz Strait Remains 'Warlike Operations Area' for Worker Representative Groups

The Strait of Hormuz and its surrounding waters will remain designated as a Warlike Operations Area through July 9, according to the International Transport Workers' Federation and the Joint Negotiating Group on Tuesday."This decision recognizes the continuing and significant risk to life and the rapidly evolving situation in the area," the statement said.The International Maritime Organization has recently paused its evacuation plan for vessels following a series of attacks on cargo ships in the Strait.The Warlike Operations Area Committee, under the International Bargaining Forum, advised all vessels in the area to follow advisories issued by the International Maritime Organization, the Joint Maritime Information Center, and regional governments involved in ship evacuations."The WOA designation ensures that seafarers on IBF-covered vessels receive enhanced protections and compensation if they are stranded or operating in the area," according to the statement."Seafarers already within the designated area are entitled to additional compensation and to request repatriation, noting the current, significant operational difficulties, while those instructed to enter it have the right to refuse to sail and request repatriation at the company's expense," it said.Protections offered to seafarers on IBF-vessels, within or entering the designated WOA, also include a bonus equal to 100% of basic wage and doubled compensation for death and disability arising from incidents in the area.The committee urged all governments "to maintain diplomacy and deescalate all conflict immediately" and to resume normal shipping patterns as soon as possible.

Oil & Energy84d ago

EMEA Natural Gas Update: Futures Edge Lower Amid Ongoing Technical Talks Between US, Iran

European natural gas futures were down on Wednesday, amid reports of technical level talks between the US and Iran currently being underway.The front-month Dutch TTF contract dropped 0.33% to 43.300 euros ($49.32) per megawatt-hour, while the UK NBP front-month dropped 1.19% to 103.210 British pence ($1.37) per therm.Talks between the two sides in Doha have reached technical levels, where the nitty-gritties of the deal will be discussed, even as senior envoys of both the US and Iran haven't held any direct talks with each other, according to a report by Al Jazeera, citing sources familiar with the matter.Meanwhile, the strategically crucial Strait of Hormuz, which accounted for one-fifth of global LNG flows, has remained effectively shut for over four months, with just five vessels transiting over the past 24 hours, according to the Hormuz Strait Monitor.To make matters worse, QatarEnergy extended its force majeure, which means it would be unable to meet contractual obligations, particularly at the Adriatic LNG terminal, until early September.Daniel Hynes, a senior commodity strategist at ANZ, said that this was "adding nervousness to an already volatile market," while noting that abnormal heat was set to hit Western Europe this week, leading to increased cooling demand and energy consumption.European gas inventories remained depleted, at just 48.86% of total capacity, compared with 58.59% in the same period a year ago, according to data from Gas Infrastructure Europe.Inventories were also significantly below the five-year average for this period, at 63.5%, according to the Swiss Federal Office of Energy.This comes at a critical juncture for the region, which is currently experiencing an unprecedented heatwave, with record temperatures across France, UK, Switzerland, and Germany, as mercury surges touches 40 degrees Celcius in certain cities, according to Severe-Weather EU.As a result, Europe is set to witness increased demand for space cooling, leading to higher gas-fired energy consumption in the near-term.

Oil & Energy84d ago

Market Chatter: Aramco Makes Rare Spot Crude Oil Sales to Asia

Saudi Aramco has sold at least 6 million barrels of crude oil to Asian buyers on a spot basis, deals which are rare compared to its usual sales through long-term contracts, Bloomberg reported Wednesday, citing traders with knowledge of the transactions.The crude cargoes bound for South Korea, Japan, and China were reportedly priced against the regional Dubai and Oman benchmarks, instead of the official selling prices. Some cargoes were also offered on a delivered basis, sources told Bloomberg.Saudi is ramping up crude production and exports following the disruption caused by the US-Iran war, with crude exports recovering to about 4.5 million barrels per day in June, the highest level since late February, according to the news agency.Saudi Aramco did not immediately respond 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 & Energy84d ago

EDF, Oman Sign Agreements for 2-GW Hydro Storage Project, 500-MW Solar Plant

French majority state-owned electric utility EDF Power Solutions and Oman signed three strategic agreements in Paris on Tuesday to advance renewable energy, grid-scale storage and digital infrastructure projects.In a high-level meeting held in the presence of Sultan Haitham bin Tarik Al Said of Oman and his French counterpart President Emmanuel Macron, the agreements included a framework with Oman's Authority for Public Services Regulation to develop the proposed 2,000-megawatt Jabal Abyad Pumped Hydro Energy Storage project.Separately, EDF Power Solutions, Oman National Engineering and Investment and OQ Alternative Energy signed a power purchase agreement with Oman Power and Water Procurement for the 500-MW Al Kamil Solar photovoltaic independent power project, under which the consortium will finance, build and operate the facility.The solar project is intended to expand the share of renewable energy in Oman's electricity mix while meeting growing demand for low-cost and low-carbon power.The parties also signed a memorandum of understanding to cooperate on developing a 1,000-MW sustainable digital infrastructure platform to support artificial intelligence, cloud computing and advanced computing services as Oman seeks to position itself as a regional technology hub under its Vision 2040 economic diversification strategy.Beatrice Buffon, CEO of EDF, said that the agreements reflect the strength of France and Oman's strategic relationship and their "shared ambition to accelerate the energy transition."She also referred to the combination of "large-scale renewable generation with advanced energy storage solutions" as a more resilient and sustainable energy system for Oman.

Oil & Energy84d ago

France-Based Vallourec Awarded Angola Offshore Development Contract by Azule Energy

Azule Energy, a joint venture between Italy's Eni (E) and BP (BP), has awarded seamless tubular solutions provider Vallourec with a contract to supply 26,000 tons of seamless carbon steel line to an offshore project in Angola, Vallourec said on Tuesday.Deliveries of the steel line, which would stretch 210 kilometers, measured end to end, will take place from July 2027 until December 2027 and support "one of the largest and most technically demanding deepwater projects currently underway offshore Angola," Vallourec said.The Greater PAJ project spans five fields about 200 km offshore Angola in water depths that range between 1,500 and 2,000 meters. Vallourec will deliver line pipe solutions for production lines, service lines, water injection lines and gas export lines for production and transport.The project will feature one of the thickest thermal insulation systems ever deployed in the subsea industry with up to 120 mm of Glass Syntactic Polypropylene (GSPP).

$BP$E

Oil & Energy85d ago

EMEA Natural Gas Update: Futures Edge Higher Amid Uncertainty Over US-Iran Peace Talks

European natural gas futures were up on Wednesday, touching a two-week high, following a breakdown in talks between the US and Iran, reigniting supply concerns.The front-month Dutch TTF contract gained 0.99% to 43.875 euros ($50.02) per megawatt-hour, while the UK NBP front-month rose 0.53% to 105.000 British pence ($1.38) per therm.This comes as direct talks between the two sides break down, with US envoys Steve Witkoff and Jared Kushner set to meet only with mediators, rather than the Iranian delegation, according to a Reuters report.Meanwhile, the strategically crucial Strait of Hormuz, which accounted for one-fifth of global LNG flows, has remained effectively shut for over four months, with just five vessels transiting over the past 24 hours, according to the Hormuz Strait Monitor.To make matters worse, QatarEnergy extended its force majeure, which means it would be unable to meet contractual obligations, particularly at the Adriatic LNG terminal, until early September.Daniel Hynes, a senior commodity strategist at ANZ, said that this was "adding nervousness to an already volatile market," while noting that abnormal heat was set to hit Western Europe this week, leading to increased cooling demand and energy consumption.European gas inventories remained depleted, at just 48.86% of total capacity, compared with 58.59% in the same period a year ago, according to data from Gas Infrastructure Europe.Inventories were also significantly below the five-year average for this period, at 63.5%, according to the Swiss Federal Office of Energy.

Oil & Energy85d ago

Hormuz Passage Creates Compliance Conundrum for Shippers, Says Kpler

Transit through the reopened Strait of Hormuz is now fraught with compliance risks that leave shippers caught between Iranian demands for coordinated or possibly tolled exits and US penalties for those who obey, researcher Kpler said on Tuesday.The essence of its research note entitled "Hormuz sanctions risk starts before payment - the OFAC warning every operator needs to understand", is that shippers run the risk of sanctions of punitive measures by the US even through evidence of contact and coordination of their exit with Iran.The US Treasury Department's Office of Foreign Assets Control warned on May 1 that US and non-US citizens alike faced a risk of sanctions for payments to Iran or the seeking of safe passage guarantees from it, regardless of how any payment was made, even as a humanitarian or charitable donation or via crypto-currency.While the industry has subsequently focused on payments, Kpler points out that the risk OFAC warns of starts at the moment of any engagement with Iranian authorities, such as sharing ship details, requesting clearance or accepting an escort from parties under sanctions."The sanctions architecture underpinning Hormuz risk is not new, but its application in this context is sharper than many compliance teams have accounted for," the report by Kpler Trade Risk Analyst Ana Subasic said.Given that the Iranian Revolutionary Guard Corps has been listed as a terrorist organization since 2019 in the US, with sanctions in place, any dealings with it entail secondary sanctions exposure regardless of intent or nationality.Secondary sanctions are also triggered regardless of any US connection to the transaction, meaning a European ship owner, Asian charterer or non-US bank for example, all carry exposure risk.Submitting information in advance of a planned transit through the strait or receiving instructions for a coordinated passage already creates a record of contact with Iran that exposes not only the requesting shipper, but potentially anyone involved in financing or insuring their voyage."Banks that identify Hormuz passage-related submissions to Iranian authorities in a vessel's voyage record may decline to finance subsequent transactions. Insurers may treat the record of clearance coordination as a material fact in claims reviews," the report said.Charterers of vessels may object outright to any such voyage, Kpler noted."If a vessel operator reaches the point of being asked for payment - whether framed as a toll, a security guarantee, an escort fee or a humanitarian contribution - they face a genuinely difficult commercial and legal position."Refusing to pay provides legal security but also entails delays and the possibility of remaining stranded in the Persian Gulf.Payments through intermediaries provide no security either, given explicit advice in the OFAC advisory that what counts is the eventual provision of value to a sanctioned party."There is no cost-free path through this decision. What distinguishes well-managed from poorly managed exposure is not which path is chosen - it is whether the decision is made deliberately, documented contemporaneously, and consistent with a legal and compliance review conducted before the voyage began," the report said.Kpler notes that insurance remains available for passage through the strait but that the sharp rise in its price raises the question of who should foot the bill for the extra amount and who covers the cost of any additional waiting time to comply with the demands of various parties.Documentation is critical for shippers in this situation, in terms of justifying the path they choose, the report said, including, for example, deviation from an agreed route due to a credible security threat."Organisations that treat documentation as an administrative afterthought are not just operationally exposed. They are commercially exposed, because the cost of an undocumented decision in a Hormuz transit dispute will materially exceed the cost of building the record as the voyage unfolds," Kpler said.

Oil & Energy85d ago

EMEA Oil Update: Brent Steady After Weakest Quarterly Performance in 6 Years

Brent crude futures were steady on Wednesday morning after closing out its weakest quarterly performance since 2020 as supply concerns eased due to reopening of the Strait of Hormuz.The Front-month Brent futures contract held steady at $73.08 per barrel. Murban futures closed at $68.76/bbl on June 30 and were not trading by the time of publication of this oil price update.Both contracts lost more than 20% on a month-over-month basis on June 30. On quarterly basis, Brent lost nearly 38% sequentially, while Murban dropped over 26%.While the political gridlock clouds the timeline for a permanent peace treaty, the 60-day ceasefire remains active, enough to allow logistics through the strait. This leaves the oil market focused squarely on the growing physical oversupply, analysts said."Tanker vessel movements in the Strait of Hormuz still appear limited. Total tanker crossings, which include both inbound and outbound movements, are estimated at around 11 on Tuesday, down from a peak of 24 last Wednesday," ING analysts said."Admittedly, there has been a slight pickup in inbound tanker traffic, suggesting that shipowners are becoming increasingly confident about moving vessels into the Persian Gulf. If this trend accelerates, it becomes a clear headwind-and potentially a direct challenge-to our view that oil prices should rise from current levels," ING added.On the geopolitical front, top US envoys Steve Witkoff and Jared Kushner have arrived in Doha for mediated talks, matching the arrival of Iranian negotiators.However, Iran reportedly said on Tuesday that it has refused direct meetings with the US delegation.Tehran is maintaining a firm stance that it will not enter final negotiations until current terms of the MoU are fully met, including an end to hostilities in Lebanon and the release of frozen Iranian assets.

Oil & Energy85d ago

Ghalibaf Says Hormuz Free Transit Only for 60 Days, Sanctions Waiver to Lift Iranian Crude Prices by 20%

Iran's Parliament Speaker Mohammad Bagher Ghalibaf said Tuesday the current agreement allows ships to pass through the Strait of Hormuz free of charge for only 60 days, according to a televised interview with the state-owned Tasnim News Agency.Ghalibaf said regional countries and Persian Gulf coastal states sought the temporary arrangement. He added that the provision mainly applied to vessels that were already in the area when the conflict began and the strait was closed.Iran and Oman hold sovereignty over the Strait of Hormuz, while shipping through the waterway operates under arrangements determined by Iran in consultation with Persian Gulf coastal states, Ghalibaf said.He added that Iran will not surrender its rights over the strategic waterway under any circumstances.Ghalibaf said the removal of oil sanctions means Iranian crude will be sold at prices 20% higher than before, with the proceeds deposited into bank accounts. He added that Tehran remains prepared to respond if the US fails to honor its commitments.Ghalibaf said the Strait of Hormuz delivers greater strategic value when commercial traffic continues expanding. He warned that Iran intends to impose restrictions on the US and Israel while ensuring shipping activity through the waterway continues to grow.Iran also wants to demonstrate that security in the Strait of Hormuz continues improving, Ghalibaf said. He added that stronger security should eventually lower marine insurance costs for vessels using the route.The parliament speaker said commercial vessels and Iranian oil tankers resumed operating through the Sea of Oman and the Strait of Hormuz after the naval blockade ended. He described the blockade as a violation of both human rights and the ceasefire.Iran has exported more than 40 million barrels of oil since the sea blockade was lifted, Ghalibaf said.Iran's Foreign Ministry did not immediately reply to' request for comment.

Oil & Energy85d ago

Market Chatter: UAE Crude Exports Hit Record High in June After OPEC Exit

The UAE raised crude oil and condensate exports to a record 3.7 million barrels per day in June as production recovered and inventories were drawn down following disruptions due to the ongoing conflict in the Middle East, Reuters reported on Tuesday.The increase came weeks after the UAE ended nearly 60 years of membership in OPEC, citing a desire to maximize the value of its resources outside the group's quota system.The Abu Dhabi National Oil Company also expanded spot sales to Nigeria's Dangote refinery and Turkey's Tupras, while demand strengthened beyond Asia.Adnoc did not immediately respond to a request for comment from.(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 & Energy85d ago

Edison Faces Further LNG Supply Hit as QatarEnergy Force Majeure Deepens

QatarEnergy has extended the force majeure affecting LNG deliveries to Edison, adding four cargoes and bringing the total number of impacted shipments to 21 through early September 2026.The Italian utility said it received notification from the Qatari state-owned energy firm confirming it will be unable to deliver the additional cargoes scheduled for the Adriatic LNG receiving terminal in Italy.Edison said that the latest disruption brings the total volume affected over the April-September 2026 period to about 2.7 billion cubic meters of natural gas.However, despite the shortfall, Edison said it had already replaced 14 LNG cargoes, equivalent to about 1.3 bcm, through alternative sourcing. The company said it is capable of meeting customer demand and honoring all commercial commitments.Edison holds a long-term supply contract with QatarEnergy for about 6.4 bcm of natural gas per year. The agreement, in place since 2009, runs for 25 years.

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Oil & Energy85d ago