Oil stocks in focus as crude hits 5-month high after U.S. strikes Iranian nuclear sites
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Shares of oil and gas companies are expected to be in focus on Monday after crude oil prices surged to their highest levels since January, following U.S. airstrikes on key Iranian nuclear facilities. Brent crude futures rose $1.88, or 2.44%, to $78.89 a barrel as of 11:22 GMT, while U.S. West Texas Intermediate (WTI) crude gained $1.87, or 2.53%, to $75.71.Earlier in the session, both benchmarks jumped over 3%, with Brent touching $81.40 and WTI reaching $78.40—both five-month highs—before paring some gains.The sharp rise came after U.S. President Donald Trump announced that the U.S. had 'obliterated' Iran's main nuclear sites over the weekend in coordination with Israeli forces. The escalation has raised fears of further instability in the Middle East, with Iran vowing to retaliate.Iran, a key OPEC member, is the bloc's third-largest crude producer. The latest developments have sparked concerns that Tehran could move to block the Strait of Hormuz—a critical waterway that handles nearly 20% of global crude shipments.Iran's Press TV reported that its parliament has approved a measure to close the strait. While Iran has made similar threats in the past, it has never followed through.Since the conflict began on June 13, Brent has surged 13%, while WTI is up around 10%.Analysts, however, cautioned that the current geopolitical risk premium may not sustain unless there is a tangible disruption in global oil supply.: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)
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Business Standard
5 minutes ago
- Business Standard
Asia's oil lifeline at risk as Iran conflict threatens key trade routes
Oil buyers and traders across Asia are watching the escalation of a conflict around Iran with bated breath, as the top importing region braces for the impact of any disruption of exports from the Persian Gulf. Asia buys more than four-fifths of all the crude produced in the Middle East, and 90 per cent of that goes through the Strait of Hormuz, according to data from Kpler SAS. Here are three key concerns for the Asian market as the conflict expands: The Iran-China link China, the world's largest oil refiner, gets about 14 per cent of its crude from Iran, Kpler data show. Actual flows are likely higher, with some imports from the Islamic Republic masked as shipments from not just Malaysia, but also the United Arab Emirates and Oman, in order to circumvent US sanctions. While China's larger state-owned processors seek to avoid breaching the bans, the country doesn't as a whole recognize unilateral US sanctions. And these discounted flows are vital for a hard-pressed private refining sector. There's growing concern those shipments could be disrupted. That has boosted demand for crude that can load on the Indian Ocean side of the Strait, including Abu Dhabi's Murban and Omani crude. Other grades that may benefit from any threat to Iranian flows are Russian ESPO, which loads from the Far East port of Kozmino, as well as Angolan varieties. Iran's fuel exports Much of that supply eventually finds its way into ship-refueling hubs including Fujairah in the UAE, Singapore and Malaysia. The so-called straight-run fuel oil that can replace crude is typically exported to the relatively simple, low-margin processors in China known as teapots. Iran also has a lot of natural gas — sharing one of the world's largest deposits with Qatar. While the Islamic Republic uses most of that domestically, it sells by-products including liquefied petroleum gas and condensates internationally. China's giant plastics sector relies on Iran for almost a quarter of its imports of LPG, which can be used for cooking and heating but also processed into petrochemicals used as plastic building blocks. That relationship has only intensified after flows from the US, traditionally China's largest supplier, collapsed because of trade conflicts earlier this year. 'If there is a complete stoppage of Iranian LPG material or even, say, a halving of the average intake to China, China has few alternatives of substance,' said Samantha Hartke, head of market analysis for the Americas at Vortexa Ltd. Iran's influence on key shipping routes The vast majority of Asia's imports come through the Strait of Hormuz, making this waterway a focus for oil merchants. While Iran may choose not to block the conduit, it's also able to threaten the safety of navigation through the Red Sea — the shortest route between Asia and Europe — using proxies such as Yemen's Houthis. About 9 per cent of global seaborne trade normally passes through the Bab el-Mandeb chokepoint, or more than $2 trillion worth of goods a year. That may affect Asia's supply from Russia, which has turned to markets in the East after being increasingly shunned by the US and traditional buyers in Europe because of its invasion of Ukraine in 2022. Ships carrying those massive volumes — ranging from flagship Urals crude to naphtha — must decide whether they continue to risk the Red Sea route, or face weeks of delays by going around South Africa instead.
Economic Times
14 minutes ago
- Economic Times
Ideaforge Technology shares hit 10% upper circuit after bagging Rs 137 crores order to supply mini UAVs to MoD
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Deccan Herald
15 minutes ago
- Deccan Herald
Crude oil sensitive stocks decline in early trade
New Delhi, Shares of crude oil sensitive sectors -- oil marketing companies, aviation, paints and adhesives -- declined on Monday morning, following a spike in Brent crude oil prices amid the ongoing conflict between Israel and stock of Bharat Petroleum Corporation Ltd dropped 1.54 per cent, Indian Oil Corporation dipped 1.22 per cent and Hindustan Petroleum Corporation Ltd declined 1 per cent on the of SpiceJet fell by 2.47 per cent and InterGlobe Aviation edged lower by 2.24 per US bombed three major nuclear sites -- Fordow, Natanz and Isfahan -- in Iran, bringing itself into the Israel-Iran Nerolac Paints dropped 3 per cent, Berger Paints declined 2 per cent, Asian Paints went lower by 1.38 per cent and Akzo Nobel India dipped 0.42 per oil benchmark Brent crude jumped 1.96 per cent to USD 78.52 a 30-share BSE Sensex tumbled 840.49 points to 81,567.68 in morning trade. The 50-share NSE Nifty dropped 253.65 points to 24, oil prices have jumped to their highest level since January after Israel struck Iran, in a dramatic escalation of tensions in the Middle imports more than 85 per cent of its crude oil needs and roughly half of its natural gas requirement. More than 40 per cent of the oil imports and half of gas imports come from the Middle East.
