ROI-ENERGY WATCH: Oil up again on fresh strikes in Iran

By Gavin Maguire

May 28 (Reuters) -

Breaking down what matters today in global energy markets

By Gavin Maguire, ROI Global Energy Transition Columnist

Crude oil prices are on the rise again after U.S. and Iran armed forces traded fresh strikes overnight, dashing hopes of a peace accord any time soon. Iran targeted a U.S. air base in Kuwait on Thursday after the United States struck what Washington described as an Iranian drone operation near the Strait of Hormuz and President Donald Trump rejected a reported compromise deal with Tehran. Rolling coverage of the latest in Iran is here.

Brent futures are currently trading around 2% higher at around $96 a barrel while U.S. WTI futures are trading around $90.50 a barrel.

U.S. crude markets were also supported by another draw on stockpiles, which have declined for six straight weeks to further tighten supplies just as the U.S. driving season gets underway. Keep up with the latest Reuters energy news here.

The hostilities in Iran have now lasted for three months, and despite a weeks-long ceasefire appear no closer to a durable peace that could lead to a reopening of ship traffic through the Strait of Hormuz. I dig into how the conflict has reshaped energy and shipping markets in my latest column.

In other news:

  • Argentina, Brunei and Gabon may not appear to have much in common. But as ROI columnist Clyde Russell explains, they are in a small group of energy producers that are big winners from the war against Iran.

  • From Antwerp to the Seychelles, Baton Rouge to Melbourne, or New York to Namibia, the closure of the Strait of Hormuz has upended global jet fuel flows. This deeply reported Reuters story highlights the widening impact of the Iran war on the global air travel industry.

  • President Donald Trump’s waivers allowing foreign-flagged ships to move oil and fuel between U.S. ports have had little impact on high domestic gasoline prices due to elevated shipping rates and the relatively small fuel volumes transported so far, a Reuters analysis found.

  • Many of Asia's largest cities are already gripped by above-normal temperatures that are prompting widespread use of power-hungry air conditioners weeks ahead of the usual peak in summer thermometer readings across the region. Stepped-up competition for power-generating fuels by Asian utilities could ignite fresh strength in global coal and gas markets.

As ever, don’t hesitate to contact me at gavin.maguire@reuters.com or follow me on LinkedIn with any questions or thoughts.

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