Ice Brent crude futures posted minor losses in early Asian trading as traders kept a close watch on the US-Iran war.
The Ice front-month November Brent contract was at $95.45/bl at 04:00 GMT today, down by 18¢/bl from its settlement on 2 September, when it ended 98¢/bl higher.
The Nymex front-month October crude contract was at $91.03/bl, higher by 2¢/bl from its settlement on 2 September, when it ended 79¢/bl higher.
Vessel traffic through the strait of Hormuz fell to some of the lowest levels in months as the US and Iran exchanged strikes around the narrow waterway. Only four vessels transited the strait on 1 September, down from 13 on Monday, data from maritime security firm Windward show.
US officials continue to maintain that the strait of Hormuz remains under control and assure that large flows of crude are exiting the narrow waterway, despite increased military activity in the region.
Venezuelan crude produced under a deal announced by US president Donald Trump last week could be swapped with lighter grades under a plan to refill the US Strategic Petroleum Reserve (SPR), US energy secretary Chris Wright said.
Trump on 30 August said that he wanted to use crude from the deal to "fill up" the SPR, even though the reserve was not built to store the heavy sour crudes that Venezuela produces. During a visit to Venezuela on Wednesday, Wright said the crude acquired under the deal could be swapped with different grades, before being put into long-term government storage.
Chinese refiners have slowed crude purchases as renewed US-Iran hostilities increase feedstock costs and create uncertainty over fourth-quarter demand. This is outweighing support from strong refining margins and fuel exports.
Ice Brent crude futures posted minor losses in early Asian trading as traders kept a close watch on the US-Iran war.
The Ice front-month November Brent contract was at $95.45/bl at 04:00 GMT today, down by 18¢/bl from its settlement on 2 September, when it ended 98¢/bl higher.
The Nymex front-month October crude contract was at $91.03/bl, higher by 2¢/bl from its settlement on 2 September, when it ended 79¢/bl higher.
Vessel traffic through the strait of Hormuz fell to some of the lowest levels in months as the US and Iran exchanged strikes around the narrow waterway. Only four vessels transited the strait on 1 September, down from 13 on Monday, data from maritime security firm Windward show.
US officials continue to maintain that the strait of Hormuz remains under control and assure that large flows of crude are exiting the narrow waterway, despite increased military activity in the region.
Venezuelan crude produced under a deal announced by US president Donald Trump last week could be swapped with lighter grades under a plan to refill the US Strategic Petroleum Reserve (SPR), US energy secretary Chris Wright said.
Trump on 30 August said that he wanted to use crude from the deal to "fill up" the SPR, even though the reserve was not built to store the heavy sour crudes that Venezuela produces. During a visit to Venezuela on Wednesday, Wright said the crude acquired under the deal could be swapped with different grades, before being put into long-term government storage.
Chinese refiners have slowed crude purchases as renewed US-Iran hostilities increase feedstock costs and create uncertainty over fourth-quarter demand. This is outweighing support from strong refining margins and fuel exports.
By YouLiang Chay