Meanwhile, Iran’s crude loadings for May drop below 0.3 million bpd: File Image/Pixabay
The enduring optimism among oil investors that a peace deal between the U.S. and Iran will be reached, despite Iran unwilling to give up its nuclear program or cease hostilities, led to the commodity on Friday continuing its downward trajectory.
As of 1616 GMT, Brent had fallen more than 2 percent to $91.61 per barrel, and West Texas Intermediate had also dropped by the same approximate percentage, to $86.73.
To the relief of consumers, Brent was also set for a more than 20 percent drop monthly drop (for May), the biggest decline since 2020; WTI was on track for a 19 percent monthly drop.
“
We’re approaching unheard-of inventory levels
Neil Chapman, senior vice president, Exxon Mobil
Although the previous session saw a 60-day ceasefire extension between the two countries ratified, mistrust and deception remained the defining factors of negotiations between the U.S. and Iran, with the latter’s latest claim of shooting down a U.S. aircraft refuted by Washington; and U.S. president Donald Trump reiterating that Tehran must immediately clear the Strait of Hormuz without charging tolls, in addition to surrendering its nuclear materials.
Trump on mid-Friday retreated to the Situation Room to make a “final determination” on the next steps with the Islamic republic.
Meanwhile, UBS analysts said crude loadings inside the Persian Gulf remained “extremely low”, with Iran’s loadings for May below 0.3 million barrels per day (bpd) compared to 1.7 million bpd in March.
Bob Parker, senior advisor at the International Capital Markets Association, said “Even if the Strait of Hormuz is opened, I think it’s fair to say that opening will only be partial,” and he added that oil prices will likely hover between $90 and $100 “at least for the next couple of months” until there is clarity with regard to U.S./Iran negotiations.
For his part, Mike Wirth, CEO of Chevron, echoed the sentiments of other energy giants by saying his company would not consider paying a toll to Iran to get its ships out of the strait; he added that this week saw new attacks on ships, “so we see risks very real, still, in that environment.”
Chevron currently has six vessels under charter operating within the Persian Gulf.
Neil Chapman, senior vice president at Exxon Mobil, remarked with regard to the depletion of commercial crude inventories, “We’re approaching unheard-of inventory levels.”
In other war-related oil news on Friday, tanker-tracking data from Kpler and Vortexa showed that the Philippines received its first cargo of Iranian crude: a Suezmax vessel departed from Kharg Island in late March, made a transfer offshore Singapore onto another tanker, which delivered the oil to the Bataan refinery in the middle of May.
Also on Friday, the Reserve Bank of India in its Annual Report stated that the global supply disruption poses near-term downside risks to economic growth and upside risks to inflation – but India’s economy was resilient to the external shocks:
“Against the backdrop of a moderate global growth, the outlook for the Indian economy in 2026-27 remains positive, supported by strong macroeconomic fundamentals, although a prolonged West Asia conflict may pose downside risk.”
Ship & Bunker News Team
To contact the editor responsible for this story email us at [email protected]