Maintaining the crude flows through the Strait of Hormuz is of foremost concern for both Saudi and the UAE.
Officials from both the U.S. and Iran have met with mediators to find a solution to the ongoing crisis.
Qatar has extended force majeure for LNG shipments to Italy and to Pakistan and Bangladesh.
LNG shipments from Qatar have dropped by 96% since the crisis started a year ago.
Natural Gas bullish with U.S-Iran diplomacy and the situation with the Strait of Hormuz the main drivers.
The extra-cost and inefficient means to move crude have offset the price bears for WTI and Brent. Maintaining the crude flows through the Strait of Hormuz is of foremost concern for both Saudi and the UAE.
Diplomacy remains the main motor of change in the short term. Officials from both the U.S. and Iran have met with mediators to find a solution to the ongoing crisis. It is expected that the U.S. will present an amended version of the framework proposed by Iran to the mediation. Iranian officials have said they do not expect an agreement will be reached, and conditions in the Strait of Hormuz will not allow for a resolution any time soon.
Natural gas will most likely remain in a supply deficit condition. Qatar has extended force majeure for LNG shipments to Italy and to Pakistan and Bangladesh. LNG shipments from Qatar have dropped by 96% since the crisis started a year ago. Only 18 shipments have been made this year as compared to 509 in the same period in 2021.
A few LNG ships owned by Qatar have recently been observed to be transiting the Strait. European countries are relying more on U.S. LNG. As the situation stands, the U.S. is expected to play a more dominant role in meeting Europe’s LNG demands.
Continued biases: USOIL and UKOIL bullish. Natural Gas bullish with U.S-Iran diplomacy and the situation with the Strait of Hormuz the main drivers.
