The crude premium came out fast Tuesday when traders heard Saudi barrels were moving again, the East-West Pipeline had restarted and Iran might reopen the Strait of Hormuz. The market sold first. Thursday is asking where the deal is. There is no agreement to reopen Hormuz.
Oil News: WTI and Brent Rally as Hormuz Hopes Fade and Diesel Stays Tight
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Key Points:
- Hormuz reopening hopes faded fast as no deal changed shipping, helping Brent and WTI recover Tuesday's selloff.
- Record gasoil premiums near $95 per barrel show Europe still needs U.S. diesel as Middle East product flows stall.
- Saudi flows rose to 2.9 million barrels per day, but partial pipeline operations leave Gulf crude routes exposed.