New York [US], August 3: Oil prices closed more than $1 a barrel higher on Friday, ending July with their biggest monthly gains since March, as concerns over global crude flows mounted following reports from Iran that some tankers were forced to turn back in the Strait of Hormuz. For July, Brent gained 24 percent and WTI rose 21 percent. Brent crude futures settled at $90.12 a barrel, and US West Texas Intermediate (WTI) crude finished at $84.67 a barrel.
For the week, Brent fell 6.9 percent, while WTI fell 5.2 percent. The war in Iran, which began on 28 February, has sharply curtailed traffic through the Strait of Hormuz, a vital chokepoint that previously carried about one-fifth of global crude oil and natural gas supplies.
Iran has largely blocked shipping through the strait since the conflict began, while the Houthis have threatened vessels transiting the Bab el-Mandeb Strait at the southern end of the Red Sea.
Asia Spot Prices Remain Near Four-Month High as US-Iran Conflict Widens
Asian spot liquefied natural gas (LNG) prices inched down this week but remained near their highest level in four months after an attack on Egyptian gas facilities added to the ongoing uncertainty over Middle East shipping routes.
The average LNG price for September delivery into northeast Asia was $21.35 per million British thermal units, down from $22.00 per mmBtu the week before.
Most players are managing with US substitution rather than any meaningful Middle East supply. Some demand destruction has occurred, but the price is being supported by a lack of supply.
In Europe, the Dutch TTF gas price settled at $19.71 per mmBtu, posting a weekly loss of 6.7 percent. A fall in Asian demand due to the higher price environment has led to stronger offers to Europe for uncommitted cargoes, analysts said.
Source: Qatar Tribune
