Oil slips from five-month high with Hormuz transits in focus
USO•Oil prices fell on Monday after reaching multi-month highs, with Brent down 1.22% to $108.52 a barrel and U.S. WTI down 0.13% to $101.28. Gulf crude flows averaged about 8.5 million barrels per day last week, down from more than 20 million the week before, Kpler said.
1. Oil prices retreat
Oil prices slipped on Monday as investors booked profits after last week’s multi-month highs. Brent crude futures fell $1.34, or 1.22%, to $108.52 a barrel by 1002 GMT; U.S. West Texas Intermediate was down 13 cents, or 0.13%, at $101.28.
2. Hormuz flows disrupted
An oil tanker struck a naval mine and exploded in the southern Strait of Hormuz on Sunday, Iran’s Islamic Revolutionary Guard Corps said, according to Iranian media. Kpler said Gulf crude flows averaged about 8.5 million barrels per day last week, compared with more than 20 million barrels per day the week before, and reported at least 10 confirmed incidents involving commercial vessels.
3. Sanctions waiver and supply
President Donald Trump signed an order waiving some sanctions and tariffs related to Russian exports. Secretary of State Marco Rubio said Trump would take up to 60 days to assess their impact on the global economy. A deal with Russian President Vladimir Putin allows diesel exports to the United States and other countries, starting at about 2.3 million barrels this month and rising to about 7.6 million barrels monthly.
