Oil hits one-week low as investors shrug off US sanctions on Iran
XLE•Shipping disruptions and refinery incidents keep a residual risk premium
"Iran still retains the ability to respond by disrupting shipping, which continues to keep a residual premium in the oil price," said Tim Waterer, chief market analyst at KCM.
An oil tanker was struck on Tuesday by an unidentified projectile and disabled about nine nautical miles (16.7 km) northeast of Oman's Ash Shishah, the United Kingdom Maritime Trade Operations said.
Just two tankers transited the Strait of Hormuz on Monday, the lowest daily tally of commodity vessels since early May, with both entering the Gulf, shipping data showed.
Supply disruptions have prompted countries to draw down commercial and strategic oil reserves.
Elsewhere, the Novoshakhtinsk oil refinery in Russia's southern Rostov region was damaged by a Ukrainian drone overnight and suspended operations, the regional governor said, while a fire broke out at the Atyrau oil refinery in western Kazakhstan on Tuesday, owner KazMunayGas said.
