Middle East crude benchmarks rose on Tuesday amid uncertainty over oil supplies arising due to tensions in the Strait of Hormuz.

Traders said they are exercising caution as escalating conflict in the region may result in additional war premiums on cargoes. About a fifth of the world’s total oil consumption passes through the strait.

The United Arab Emirates coast guard said on Tuesday it had evacuated 24 people from the oil tanker ADALYNN following a collision between two ships in the Gulf of Oman, near the Strait of Hormuz.
Meanwhile, global oil demand will keep growing until around the end of this decade despite peaking in top importer China in 2027, as cheaper gasoline and slower electric vehicle adoption in the United States support consumption, the International Energy Agency said.

SINGAPORE CASH DEALS

** Cash Dubai’s premium to swaps rose 33 cents to $2.40 a barrel.
** Vitol will deliver a cargo of August Oman crude to TotalEnergies following the deals.

NEWS

** Oil futures rose on Tuesday, with analysts saying that uncertainty would keep prices elevated, even as there were no concrete signs of any production losses stemming from the Iran-Israel conflict.

** Electronic interference with commercial ship navigation systems has surged in recent days around the Strait of Hormuz and the wider Gulf, which is having an impact on vessels sailing through the region, naval forces said on Monday.

** Brazilian state-run oil firm Petrobras announced on Monday that it had signed contracts worth approximately 4.9 billion reais ($892.3 million) for the completion of a new refining unit at its RNEST refinery.
Source: Reuters