Key facts
- Oil prices are stabilizing near $90 a barrel.
- Oil prices logged their strongest monthly gain since March.
- Concerns over global crude flows include potential disruptions in the Strait of Hormuz.
- Attacks near the Caspian Pipeline Consortium terminal are impacting crude flows.
- US inventories have fallen.
- Saudi Arabia is forming an international coalition to protect Red Sea shipping from Houthi attacks.
- ADNOC purchased five supertankers for approximately $590 million.
- ADNOC's acquisition aims to secure crude oil deliveries amid a tightening shipping market.
- ExxonMobil and Chevron warn of high diesel and refined product prices in the second half of the year.
- Algerian Sonatrach set August LPG contract prices at $540/t for propane and $570/t for butane.
Oil prices are stabilizing near $90 a barrel, with Brent and WTI futures poised for their strongest monthly gains since March, ending a two-month decline. This upward pressure is driven by concerns over global crude flows, including potential disruptions in the Strait of Hormuz and attacks near the Caspian Pipeline Consortium terminal. Falling US inventories also contribute to the tightening market. Saudi Arabia is actively forming an international coalition to protect Red Sea shipping from Houthi attacks, addressing ongoing disruptions in the region. In parallel, Abu Dhabi's ADNOC has purchased five supertankers for approximately $590 million through its ADNOC Logistics and Services arm. This acquisition aims to secure crude oil deliveries amid a tightening shipping market exacerbated by Middle East tensions and to support the UAE's increased crude oil production and exports. ExxonMobil and Chevron are issuing warnings about persistently high diesel and refined product prices expected in the second half of the year. These elevated prices are attributed to ongoing energy disruptions stemming from the Iran war, declining fuel stockpiles, curtailed Chinese exports, and Russian refinery outages. Both companies reported significant jumps in their second-quarter refining profits, underscoring the impact of these market conditions. Algerian state-owned Sonatrach has set its August LPG contract prices at $540/t for propane and $570/t for butane, representing increases of $100/t and $90/t, respectively. These gains are linked to rising crude benchmarks, even with some weakness observed in regional LPG markets. Traders are currently evaluating supply flows and U.S.-Iran talks as they assess the market.