Oil eases as market focuses on Strait of Hormuz
Oil prices dipped on Monday as investors focused on the crucial Strait of Hormuz and the head of the IEA said more crude could be released to the market if necessary. As the Middle East war entered its third week, Wall Street opened higher while most European stocks climbed after Asian stocks mainly dipped. International […]
Oil prices dipped on Monday as investors focused on the crucial Strait of Hormuz and the head of the IEA said more crude could be released to the market if necessary.
As the Middle East war entered its third week, Wall Street opened higher while most European stocks climbed after Asian stocks mainly dipped.
International benchmark Brent North Sea crude dropped back two per cent to $101 after rising about three per cent earlier in the day, while the main US contract, West Texas Intermediate, plunged more than five per cent to $93.37.
The price falls came as the head of the International Energy Agency, Fatih Birol, said member countries could unlock more oil from strategic stocks “if needed”.
The IEA on March 11 already agreed to its biggest-ever release, of 400 million barrels.
Crude prices also eased after a Pakistani oil tanker became the first non-Iranian tanker to transit the Strait of Hormuz with its automatic transponder system activated, according to monitor Marine Traffic.
US President Donald Trump piled pressure on allied powers over the weekend to help reopen the vital shipping lane choked off by Iranian attacks.
UK Prime Minister Keir Starmer said London was working with allies to come up with a “viable” plan to reopen the Strait of Hormuz, which Iran has declared closed to US and US-allied traffic.
Iran’s Foreign Minister Abbas Araghchi told CBS his country was not interested in talks with Washington, but was ready to speak to countries about safe passage through the Strait of Hormuz.
Japan said Monday it was beginning to release strategic oil reserves, after International Energy Agency members agreed last week to tap oil stockpiles to cushion the surge in prices caused by the war.