Brent Could Hit $100 as Hormuz Crisis Flares Again
Hormuz tensions are flaring again as Iranian exports collapse, pushing Brent toward $87 and raising the risk of another run toward $100. China’s Crude Drawdown Puts Iranian Barrels Back in Demand - Shrinking crude inventories in China might spur a buying spree over the upcoming weeks, particularly for Russian and Iranian crude, buoyed by a record-high July stock draw in Shandong. - Chinese…
Brent crude oil prices could soar past $100 per barrel as tensions escalate around the Hormuz Strait, according to recent reports. Iranian crude exports have plummeted, pushing Brent prices to $87 per barrel and raising concerns of a potential jump to $100. China's crude drawdown, with stockpiles in the northeastern Shandong province declining by 35 million barrels in July, is fueling a buying surge for Iranian and Russian crude oil.
Chinese refiners are also ramping up utilization rates, with current run rates at around 50% after hitting multi-year highs in June-July. Meanwhile, Iranian crude barrels in floating storage remain constant at 40 million barrels, double the amount seen in early July when navigation was unimpeded. US energy firms P66 NYSEPSX, Kinder Morgan NYSEKMI, and HF Sinclair NYSEDINO have agreed to build a $5 billion Western Gateway pipeline system for refined products to California from St. Louis, MO.
BP has also acquired a 70% stake in the Calypso deepwater offshore project in Trinidad and Tobago. ENI is partnering with APA to explore Uruguay's Block 6. ADNOC has purchased six VLCCs and five VLGCs on the secondary market. The US president's demands for compensation from Iran over past conflicts are complicating Hormuz Strait negotiations.
Meanwhile, OPEC output has rebounded to 19.9 million barrels per day, with Libya's refiner facing operational disruptions and Trump extending a Jones Act waiver.
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