oil flows

Chinese buyers are purchasing Russia’s ESPO crude oil weeks earlier than usual as refiners seek to secure supplies amid heightened risks to Middle East oil flows.

The U.S. and Iran signed a peace deal on June 17, leading Iran to reopen the Strait of Hormuz. The conflict had disrupted global oil supplies, particularly affecting Southeast Asian markets, but experts predict it will take months for oil flows and prices to return to pre-war levels due to logistical challenges and depleted stockpiles.

The Strait of Hormuz backlog may take weeks to clear following a US-Iran deal, with analysts warning oil flows could remain slow and vulnerable to further disruption.

U.S. Energy Secretary Chris Wright claimed 7 million barrels of oil daily are exiting the Persian Gulf due to U.S. military support, but Chevron CEO Mike Wirth disputed the figure, citing smaller volumes. The Strait of Hormuz remains partially operational amid the Iran war, with Saudi Arabia and the UAE diverting oil via pipelines, creating a 14 million-barrel-per-day gap in typical flows.

Fereidun Fesharaki claims 'both sides are lying' regarding oil flows, suggesting conflicting narratives exist about the issue. The statement highlights disputed perspectives on oil-related matters.

The Strait of Hormuz will remain open under new conditions set by Iran and Oman, including a transit fee, according to Iran's ambassador to Moscow. The U.S.-Israeli war on Iran has disrupted oil flows through the strait, though some tankers have recently exited the Gulf, with oil and LNG flows still significantly constrained.