CRUDE WRAP: WTI (U6) SETTLES USD 2.02 LOWER AT USD 81.25/BBL; BRENT (V6) SETTLES USD 1.91 LOWER AT USD 87.07/BBL
Crude prices fell as weak demand forecasts and surging U.S. inventories outweighed geopolitical risks from Houthi attacks and the Hormuz blockage, keeping the market in a volatile holding pattern.
News detail
The crude complex was lower on Thursday in choppy trade, amid light headline newsflow. As alluded to, it was typical summer trading conditions today, with very limited news and choppy price action as Middle East updates even took a back seat. Overall, desks await the next breakthrough or escalation, as currently it very much seems to be in a holding pattern until newsflow dictates otherwise. Despite the lack of updates, Iran reiterated Tehran-Muscat talks are ongoing and progressing positively, having achieved progress on several levels. However, on the other side, the Strait of Hormuz authority rejected US claims and said the waterway remained blocked until Iran's conditions are met. In addition, Houthis reportedly targeted an Aramco refinery in Saudi Arabia's Jizan with two drones, according to Saba News Agency. For the record, WTI traded between USD 80.09-83.30/bbl and Brent USD 85.85-89.07/bbl ahead of a quiet day of scheduled risk events on Friday.
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