Israel [Jerusalem], June 21: Brent crude edged higher on Friday but remained on track for a weekly decline of about 8%, as a ceasefire agreement between Israel and Hezbollah eased immediate supply concerns.
Brent crude futures settled at $80.57, and US West Texas Intermediate crude (WTI) finished at $77.54. For the week, Brent fell 7.7 percent, while WTI fell 8.6 percent.
At least four tankers carrying crude, oil products, and liquefied petroleum gas entered the Strait of Hormuz on Friday. Despite the uptick in activity, Iran signaled tighter control over shipping, with state TV reporting that vessels must coordinate transit with the Revolutionary Guards navy.
Analysts expect the deal to release more than 85 million barrels of oil stranded in the Middle East Gulf into global markets. The agreement also includes the lifting of US sanctions on Iranian oil, which would increase supply.
Asia spot LNG at four-month low as Hormuz flows restart, upside risk remains
Asia's spot LNG price fell to a four-month low last week as shipments resumed through the Strait of Hormuz. However, traders remain cautious as hopes for a diplomatic breakthrough faded after scheduled US-Iran talks on Friday were cancelled.
The average LNG price for July delivery into northeast Asia was $15.30 per million British thermal units, down from $19.15 per mmBtu the week before.
Asian buyers may continue sourcing term cargoes from the Atlantic basin as Qatari LNG exports through Hormuz remain well below pre-conflict levels.
In Europe, the Dutch TTF gas price settled at $14.17 per mmBtu, posting a weekly loss of 10.5 percent. Investment funds accelerated their selloff of TTF futures last week. They still hold a sizeable legacy net long position, but momentum and sentiment have moved decisively in the opposite direction.
Source: Qatar Tribune
