Crude oil prices edged lower on Tuesday after U.S. President Donald Trump suggested that any peace deal with Iran might not materialize until after the November midterm elections, according to Ship & Bunker. Trump also renewed his warning that the U.S. could “annihilate” the Islamic republic in the absence of an agreement, dampening optimism that had briefly lifted crude by more than 4 percent in the prior session following signs of easing tensions at the United Nations.
Iran, for its part, cautioned European nations hosting U.S. military bases that assisting any further American strikes would carry serious consequences, Ship & Bunker reports.
Market Movement
By 1507 GMT on Tuesday, Brent crude had fallen 40 cents to $99.94 per barrel, while West Texas Intermediate dropped 36 cents to $95.43 per barrel, according to the report.
Strait of Hormuz Developments
According to Ship & Bunker, increased vessel transits through the Strait of Hormuz appeared to ease market concern, even after an Iranian official stated that the country would reopen the waterway within seven days if Washington reduced military pressure and lifted its blockade on Iranian ports. The same official reportedly said Iran’s UN delegation held full authority to pursue renewed diplomacy with the United States, a signal some analysts interpreted as evidence that Trump’s firm stance was having an effect, per the report.
Inventory Data and Saudi Pipeline Restart
The American Petroleum Institute estimated that U.S. crude inventories rose by 1.7 million barrels in the week ending September 18, following a 7.1 million barrel increase the previous week, Ship & Bunker reports. Gasoline inventories, however, fell by 2.1 million barrels over the same period after rising 1.4 million barrels the week before.
Separately, Saudi Arabia restarted its East-West oil pipeline despite Goldman Sachs’ concerns that recovery from Houthi attacks could take months, according to the report. Saudi Aramco is reportedly working to restore flows to around 4 million barrels per day, with tankers said to be repositioning toward Egypt’s Port Said and Sidi Kerir for ship-to-ship transfers, per Reuters sources cited by Ship & Bunker.
India’s Russian Oil Imports Decline
Ship & Bunker also reports that India’s oil imports from Russia fell 16.5 percent in August, with further declines expected in September as new U.S. sanctions threaten 100 percent tariffs on major buyers of Russian crude. Indian refiners are reportedly seeking replacement barrels on spot markets while assessing the risks of continued Russian purchases.
Does This Matter to You?
Continued volatility tied to U.S.-Iran tensions and Strait of Hormuz rhetoric remains a factor bunker buyers, traders, and vessel operators may want to monitor, given the strait’s role as a critical chokepoint for oil flows. Shifts in Saudi pipeline output and changing Russian crude trade patterns, driven by sanctions pressure on Indian buyers, could also influence crude supply dynamics that feed into bunker fuel pricing. The source material does not specify direct effects on bunker markets beyond the crude price movements reported.
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
