The correction is real and so is the reason it has a floor. Saudi Arabia found a way to get crude out through Oman. Product stocks are building. China is shipping more fuel than it has all year. Sellers had three sessions of lower prices and the data to back them up. Brent is still above $103 because four commodity vessels through the Strait of Hormuz on Thursday is not a functioning shipping lane and nobody has scheduled the next round of peace talks.
Oil News: China Fuel Exports and U.S. Diesel Builds Give Crude Sellers the Edge
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Key Points:
- WTI slipped below $97 and Brent held above $103 as product stocks built and China increased refined-fuel exports.
- Saudi Arabia’s Oman transfers eased the worst supply fears, but damaged pipeline capacity keeps a floor under crude oil.
- Only four vessels crossed Hormuz Thursday versus an average near 16, keeping the oil risk premium elevated.