Key facts
- Middle East fuel oil exports are projected to reach a four-month high in June.
- Saudi Arabia is resuming crude loadings at its Ras Tanura terminal.
- Ras Tanura terminal had been idle since early March.
- Gulf stock markets declined as oil prices retreated to pre-war levels.
- Brent crude fell to $72.24 a barrel.
- Vessel traffic in the Strait of Hormuz doubled in 24 hours.
- Oil prices increased by approximately 2% after a cargo vessel was struck near Oman.
- Kuwait plans to boost its oil output to 2 million barrels per day.
- Russia is expanding oil sales to Indonesia, the Philippines, and Vietnam.
- US waivers and preferential pricing are facilitating Russia's oil deals.
Middle East fuel oil exports are anticipated to reach a four-month high in June, bolstered by increased shipments from Iraq, Saudi Arabia, and Oman. Saudi Arabia has resumed crude loadings at its primary Persian Gulf oil terminal, Ras Tanura, which had been inactive since early March. Concurrently, Gulf stock markets experienced a decline as oil prices retreated to pre-war levels, influenced by a preliminary agreement between the United States and Iran. Brent crude dropped to $72.24 a barrel, while vessel traffic in the Strait of Hormuz doubled within a 24-hour period.
However, oil prices saw an increase of approximately 2% following an incident where a cargo vessel was struck by an unknown projectile near Oman. This event has heightened concerns regarding the timeline for the normalization of oil flow in the Middle East. In response to potential supply disruptions, Kuwait has announced plans to increase its oil output to 2 million barrels per day.
Amidst these Middle East supply disruptions, Russia is actively expanding its oil sales to Asian countries, including Indonesia, the Philippines, and Vietnam. These sales are being facilitated by U.S. waivers and preferential pricing structures, which are encouraging a shift towards government-to-government trade agreements to circumvent existing sanctions.