Oil Set for Weekly Gain as Iran War Escalation Threatens Flows

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomePMN BusinessOil Set for Weekly Gain as Iran War Escalation Threatens FlowsOil headed for its biggest weekly advance since April as the escalating conflict between the US and Iran disrupted supply from the Middle East.Author of the article: You can save this article by registering for free here. Or sign-in if you have an account.c6]k9qs8a)r9jy6m6iq[lad0_media_dl_1.png Nymex, Bloomberg(Bloomberg) — Oil headed for its biggest weekly advance since April as the escalating conflict between the US and Iran disrupted supply from the Middle East.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountGlobal benchmark Brent traded around $85, on track for a weekly gain of about 12%, while West Texas Intermediate rose toward $80 a barrel. The US carried out another wave of attacks on Iran, hitting targets including defense sites, following the prior night’s strikes that hit an oil tanker near the OPEC member’s main export terminal. Elsewhere in the region, Qatar — a mediator in peace talks — said its armed forces intercepted missiles that targeted the state. Meanwhile, Reuters reported that Tehran had told Yemen’s Houthi rebel group to close the Bab el-Mandeb gateway ​to the Red Sea — a vital lifeline for Saudi Arabia’s oil exports — if Iranian power infrastructure is targeted. Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againCrude has soared to near its highest in about a month, paring a roughly 30% decline in the second quarter, as the escalation revives concerns over traffic in the Strait of Hormuz, the chokepoint for about a fifth of global oil flows. The conflict has also impacted the supply of fuels such as diesel and gasoline — sending profit margins for US refiners to records.“Refined products are much more of a squeeze than crude oil,” said Simon Lack, a portfolio manager at the Catalyst Energy Infrastructure Fund. “We only had that short-term peace when energy executives were warning that we’ve been drawing down inventories, there’s really not a lot of slack left in the system.”Fuel markets in the US and Europe are flashing record tightness, raising the risk of higher costs for consumers already under strain. The squeeze coincides with a plunge in Russian exports after Ukraine attacked the country’s refineries and prompted Moscow to ban diesel exports. While visible transits through Hormuz have slid, some voyages appear to be continuing, with a handful of tankers conducting ship-to-ship transfers off the coast of Oman. Scrutiny has grown on whether flows through the waterway would continue after Iran targeted vessels that were shuttling barrels out for the United Arab Emirates earlier this week. Meanwhile, two Iran-linked tankers carrying cooking fuel, part of a flotilla transporting the country’s exports, are making repeated U-turns and zigzagging in the Gulf of Oman and the Arabian Sea, as a US naval blockade tightens. The market focus is shifting from the chance of diplomatic breakthrough to whether oil flow can continue despite persistent security risks, Jorge Leon, senior vice president and head of geopolitical analysis at Rystad Energy AS, said in a note.“The narrow deal remains our base case, but it has become a considerably less comfortable one,” he said. “The question becomes whether the shipping market can adapt to a continuing threat rather than whether the diplomacy can resolve one” when the 60-day negotiation period expires after Aug. 16, he said. —With assistance from Mia Gindis and Nicholas Lua.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.