Oil prices edged higher on Thursday, putting crude on track for a significant weekly gain as the United States prepares measures aimed at economically isolating Iran, according to Ship & Bunker.
By 0813 GMT, Brent crude for October delivery had risen $1.20 to $92.82 per barrel, while West Texas Intermediate for September delivery gained 92 cents to reach $86.75 per barrel, Ship & Bunker reported.
Washington’s Iran Plan Drives Sentiment
According to Ship & Bunker, the upward price momentum stems largely from U.S. President Donald Trump’s plan to isolate Iran’s economy, with details expected to be announced on Monday. Trump has indicated the measures will extend to any countries that continue trading with Iran, the outlet reported.
Despite the gains, Ship & Bunker noted that fears of a major military escalation appear to be easing compared to earlier in the crisis. Hiroyuki Kikukawa, chief strategist at Nissan Securities Investment, told Ship & Bunker that “oil prices remained elevated as the market is supported by sporadic attacks in the Middle East but lacks fresh momentum without a major escalation.” Kikukawa added that “the market is likely to maintain a gradual upward trend given uncertainty over peace talks and tensions involving the United Arab Emirates, Oman and Iran.”
Mixed Inventory Signals
Ship & Bunker reported that the U.S. Energy Information Administration disclosed distillate fuel stockpiles, including diesel and heating oil, fell for a third consecutive week. However, crude oil inventories unexpectedly increased by 4.4 million barrels, adding to uncertainty about the underlying strength of the market.
China Overtakes India in Russian Crude Purchases
Separately, Ship & Bunker cited Kpler data showing China’s seaborne imports of Russian crude were estimated at 1.25 million barrels per day in August, down slightly from 1.42 million bpd in July, though both months remain China’s strongest for Russian crude imports.
Market analyst Julianne Geiger of Oilprice.com, as cited by Ship & Bunker, noted that China is displacing India in Russia’s oil trade. India’s imports fell sharply to an estimated 1.8 million bpd in August, down from a record 2.79 million bpd in July and 2.73 million bpd in June, according to Geiger. She warned that if India cannot replace the diverted Russian barrels, “September fuel exports could be the next thing to shrink.”
Does This Matter to You?
Shifts in Iran-related sanctions and evolving Russian crude flows can influence bunker fuel pricing, availability, and sourcing decisions across global ports. Changes in crude inventory data and geopolitical developments in the Middle East may affect freight and fuel cost planning for vessel operators and traders monitoring the region. The reshuffling of Russian crude buyers between China and India, as reported by Ship & Bunker, could also have downstream effects on fuel export volumes relevant to shipping and bunkering markets.
Gulf Bunkering does not provide operational or security guidance. This article is for informational purposes only. Operators should consult flag state authorities, P&I clubs, and relevant advisories for decisions relating to transit planning.
Sources: Ship & Bunker
