Dan Pickering, CIO of Pickering Energy Partners, discusses his outlook on the oil market ahead of the signing of the U.S.-Iran deal to end the war, and why it's unlikely that oil will fall to the $60 per barrel level.
United Arab Emirates state-owned producer Abu Dhabi National Oil Co has told its customers to resume loading its crude oil from its ports at Das and Zirku islands, in the Gulf, Bloomberg news reported late on Thursday citing a notice sent to customers.
Oil prices steadied as markets weighed the interim U.S.-Iran agreement. Shipping through the Strait of Hormuz showed signs of recovery.
Oil prices fell on Friday on the prospect of more supply returning to the market after oil tankers began to move through the Strait of Hormuz following the signing of the U.S.-Iran interim peace deal.
Oil fell in early Asian trade on signs of a reopening of the Strait of Hormuz, a critical channel through which one-fifth of the world's oil is typically transported.
The specter of a prolonged crunch in energy supplies has faded, but the disruption could take months to unwind.
Oil prices fell about 10% this week to their lowest levels since the war in Iran started after President Trump signed a deal to reopen the Strait of Hormuz.
A recovery in oil flows through the Strait of Hormuz and oil production following the U.S.-Iran interim peace deal will take time, potentially several months, analysts at two banks said.
The cartel forecast demand to grow by 19 million barrels a day to around 124 million barrels a day in 2050, driven by road transportation, aviation and petrochemicals.
My direct conversations with industry executives and experts based both here and in the Middle East indicate ships will start steaming through the Strait very soon. The "Ghalibaf factor" may hold the key as to whether oil prices keep falling.
Brent crude and WTI were dropping after the signing of the U.S.-Iran peace deal, with markets focusing on the prospect for a swift reopening of the Strait of Hormuz.
Middle Eastern crude oil markets could come under further pressure if the Strait of Hormuz reopens on Friday following the U.S.-Iran interim deal, releasing millions of barrels of oil stranded in the Middle East Gulf into global markets, industry executives said.