Konstantinos Chrysikos Head of Customer Relationship Management at Kudo.com
(MENAFN- MENAFNEditorial) Oil prices retreated on Friday after Washington ruled out military action against Iran ahead of the US midterm elections. Tehran's signal that proposals exchanged through intermediaries are being finalised for the US side has added momentum to the diplomatic track and reduced expectations of near-term escalation.
Although tanker traffic through the Strait of Hormuz remains restricted as security incidents continue, alternative routes are providing an important buffer. Saudi Arabia continues to move crude through its East-West pipeline, although any disruption to that infrastructure could quickly threaten export capacity and restore upside pressure.
Looking ahead, crude could remain under moderate pressure if the diplomatic track holds, although constrained shipping could limit the downside. A constructive US response to Iran's proposals, followed by a recovery in tanker crossings, would provide stronger evidence that the physical disruption is easing and could extend the decline. Conversely, renewed tensions could quickly push prices up, although continued use of alternative export routes by Gulf producers may temper the extent of any rebound.
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Although tanker traffic through the Strait of Hormuz remains restricted as security incidents continue, alternative routes are providing an important buffer. Saudi Arabia continues to move crude through its East-West pipeline, although any disruption to that infrastructure could quickly threaten export capacity and restore upside pressure.
Looking ahead, crude could remain under moderate pressure if the diplomatic track holds, although constrained shipping could limit the downside. A constructive US response to Iran's proposals, followed by a recovery in tanker crossings, would provide stronger evidence that the physical disruption is easing and could extend the decline. Conversely, renewed tensions could quickly push prices up, although continued use of alternative export routes by Gulf producers may temper the extent of any rebound.
Appreciate your cooperation in publishing the analysis.
For any inquiry or more information please do not hesitate to contact us.
Regards
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