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Asia midday crude futures: Ice Brent extends gains
Ice Brent futures rose in early Asian trading after the US insisted on the reopening of the strait for Hormuz for its peace negotiations with Iran to proceed.
The Ice front-month August Brent contract was at $96.89/bl at 04:00 GMT, higher by 89¢/bl from its settlement on 2 June when it ended $1.02/bl higher.
The Nymex front-month July crude contract was at $94.71/bl, up by 95¢/bl from its settlement on 2 June when it ended $1.60/bl higher.
Reopening the strait of Hormuz "is predicate to anything else happening," US secretary of state Marco Rubio said on 2 June. The Iranians "need to announce that they will no longer fire on commercial ships that are going through or threaten to fire on ships." Only then can negotiations resume in earnest, focusing on Iran's nuclear programme, Rubio said.
Iran has been aiming to formalise its de facto control over the critical Mideast Gulf waterway and to monetise that oversight. Iran's Persian Gulf Strait Authority, an agency established to enforce Iranian terms of navigation through Hormuz, said on 1 June that more than 300 non-Iranian vessels have applied for permits to cross the strait.
US president Donald Trump for more than a week has described a US-Iran deal as practically finalised. But reaching a deal has proven elusive, and the two countries' militaries have been exchanging fire in the Mideast Gulf with increasing frequency.
The current waiver — valid through 17 June — allows buyers to purchase Russian oil loaded onto vessels before 17 April, even if the sellers and ships carrying the cargoes are under US sanctions. The US administration began to issue Russia sanctions waivers in March, after the Iran war resulted in disruptions of Mideast Gulf supply.
Banks have raised their short-term oil price forecasts following the conflict in the Middle East, but they expect the market shock to prove temporary, according to a survey carried out by law firm Haynes Boone.
Lenders increased their average 2026 oil price forecast to $65.64/bl from $55.44/bl in the fall survey, while expectations for next year were raised to $60.44/bl from $55.56/bl. But longer-term forecasts remained steady, with lenders anticipating prices will trade within the $57-$59/bl range from 2028 through 2035, according to the Spring 2026 Haynes Boone Energy Bank Price Deck Survey.
The so-called "price decks" are one of the main factors used by banks to determine borrowing bases, or the amount of credit a lender is willing to offer oil and gas producers.
The survey, which included responses from 31 banks, showed differing views as to the timing and pace in which the market will stabilise. Some lenders forecast oil prices in a range of $70-$89/bl this year and next, but others expect prices closer to $55-$60/bl.
Ice Brent futures rose in early Asian trading after the US insisted on the reopening of the strait for Hormuz for its peace negotiations with Iran to proceed.
The Ice front-month August Brent contract was at $96.89/bl at 04:00 GMT, higher by 89¢/bl from its settlement on 2 June when it ended $1.02/bl higher.
The Nymex front-month July crude contract was at $94.71/bl, up by 95¢/bl from its settlement on 2 June when it ended $1.60/bl higher.
Reopening the strait of Hormuz "is predicate to anything else happening," US secretary of state Marco Rubio said on 2 June. The Iranians "need to announce that they will no longer fire on commercial ships that are going through or threaten to fire on ships." Only then can negotiations resume in earnest, focusing on Iran's nuclear programme, Rubio said.
Iran has been aiming to formalise its de facto control over the critical Mideast Gulf waterway and to monetise that oversight. Iran's Persian Gulf Strait Authority, an agency established to enforce Iranian terms of navigation through Hormuz, said on 1 June that more than 300 non-Iranian vessels have applied for permits to cross the strait.
US president Donald Trump for more than a week has described a US-Iran deal as practically finalised. But reaching a deal has proven elusive, and the two countries' militaries have been exchanging fire in the Mideast Gulf with increasing frequency.
Meanwhile, the US likely will keep extending sanctions waivers allowing buyers in Asia to purchase Russian crude in floating storage, Rubio said on 2 June.
The current waiver — valid through 17 June — allows buyers to purchase Russian oil loaded onto vessels before 17 April, even if the sellers and ships carrying the cargoes are under US sanctions. The US administration began to issue Russia sanctions waivers in March, after the Iran war resulted in disruptions of Mideast Gulf supply.
Banks have raised their short-term oil price forecasts following the conflict in the Middle East, but they expect the market shock to prove temporary, according to a survey carried out by law firm Haynes Boone.
Lenders increased their average 2026 oil price forecast to $65.64/bl from $55.44/bl in the fall survey, while expectations for next year were raised to $60.44/bl from $55.56/bl. But longer-term forecasts remained steady, with lenders anticipating prices will trade within the $57-$59/bl range from 2028 through 2035, according to the Spring 2026 Haynes Boone Energy Bank Price Deck Survey.
The so-called "price decks" are one of the main factors used by banks to determine borrowing bases, or the amount of credit a lender is willing to offer oil and gas producers.
The survey, which included responses from 31 banks, showed differing views as to the timing and pace in which the market will stabilise. Some lenders forecast oil prices in a range of $70-$89/bl this year and next, but others expect prices closer to $55-$60/bl.
By YouLiang Chay