US Cash Crude-Grades mixed on another SPR release, M. East tensions support Mars

U.S. Gulf Coast crude grades mostly weakened on Monday as another large release from the Strategic Petroleum Reserve added to supply and pressured prices. The Department of Energy said SPR inventories fell by 5.3 million barrels to 293.4 million barrels last week, the lowest level since December 1982, with traders focusing on the additional crude entering the market. Limiting losses, however, were escalating tensions between the United States and Iran, which reinforced concerns that oil flows through the Middle East may not resume normally anytime soon.

U.S. President Donald Trump said Washington was not seeking an extension of the temporary ceasefire agreed in June, while a senior Iranian official said Tehran will shift to a "fully offensive" military posture because efforts to negotiate a permanent end to its war with the U.S. have stalled.

Shipping through the Strait of Hormuz also slowed over the weekend. Kpler data showed five commodity vessels transited the waterway on Saturday, with none registered for Sunday. This compares to 31 for the prior weekend.