Rising geopolitical risk pushed Brent well past $80 last week, but the brief price rally has been dampened by continued economic concerns and a strong supply situation, OilPrice reported.
A Trafigura-controlled tanker carrying naphtha was struck by Houthi missiles Friday late evening, en route to Southeast Asia after several ship-to-ship transfers in Greece’s Kalamata, and it took the crew two days to extinguish the fire aboard.
The potential for a larger conflagration in the Middle East lifted Brent well above 80 per barrel earlier this week, but weak Chinese data poured some cold water on that bullish sentiment, with domestic consumption coming in below expectations and the property market remaining on tenterhooks as Evergrande is finally mandated to liquidate. Potentially offsetting the Chinese malaise, the Federal Reserve meeting and US inventories will be the leading pricing signals this week.
Indian diesel flows to Europe dry up. India has become one of the key suppliers of diesel to the European market after Russian volumes pivoted away to Asia, but the Red Sea disruptions and high freight led to India’s exports slumping by a hefty 80% month-on-month, a mere 50,000 b/d. /Oilprice.com/