Oil News: Hormuz Ship Counts Keep Crude Oil Futures Bid Despite Weak Demand
WTI futures stay supported as Hormuz tanker turns, weak ship traffic and low U.S. crude stocks keep the oil supply premium alive.
The oil market has stopped trading headlines and started counting ships. Iran stopped two tankers from leaving the Strait of Hormuz on Friday and turned four more around. Two very large crude carriers loaded with Gulf cargoes still made it through. That is not a reopening. That is a strait operating under Iranian military control one vessel at a time. A drone strike hit gas vessels at Egypt’s Damietta port. The Houthis are threatening Saudi Red Sea cargoes. Saudi Arabia responded by proposing a multinational defense coalition for the waterways it needs to keep open. You do not build a military coalition for shipping lanes you expect to reopen through diplomacy.