7 February (Argus) — Ice Brent crude futures traded higher in early Asian trading hours, as traders continue to evaluate the impact of potential US tariffs against its neighbours.
At 04:00 GMT, the Ice front-month April Brent contract was at $74.64/bl, higher by 35¢/bl from its settlement on 6 February when the contract ended 32¢/bl lower.
The Nymex front-month March crude contract was at $70.91/bl, up by 30¢/bl from its settlement on 6 February when the contract ended 42¢/bl lower.
"People will be nervous about committing too far forward," Equinor vice president of crude trading and refinery optimisation Simon James told delegates at the Argus Global Crude Summit Americas in Houston, Texas, on 6 February. "The fact that the initial tariffs around Canada and Mexico were so punitive at 25pc, how someone handles that risk ... is extremely difficult," said Simon.
The threat of tariffs have prompted some US refiners to show interest in Brazilian crudes, according to Brazilian independent oil and natural gas company Prio.
Insurance premiums for Red Sea shipping routes have become notably volatile this week as insurers struggle to assess war risk, just as vessel operators were considering returning to the region. Market participants indicated they are facing war risk insurance premiums (AWRPs) up to three times higher than that at the start of the week.
AWRPs are normally stable and typically only rise because of an increased military threat, which makes this week's increase unusual given the avowed cessation of hostilities by the Yemen-based Houthi armed group, which had been operating a military campaign against Red Sea shipping in solidarity with Palestinians in Gaza.
7 February (Argus) — Ice Brent crude futures traded higher in early Asian trading hours, as traders continue to evaluate the impact of potential US tariffs against its neighbours.
At 04:00 GMT, the Ice front-month April Brent contract was at $74.64/bl, higher by 35¢/bl from its settlement on 6 February when the contract ended 32¢/bl lower.
The Nymex front-month March crude contract was at $70.91/bl, up by 30¢/bl from its settlement on 6 February when the contract ended 42¢/bl lower.
US tariffs aimed against Canda and Mexico could dissuade traders from trading oil too far forward.
"People will be nervous about committing too far forward," Equinor vice president of crude trading and refinery optimisation Simon James told delegates at the Argus Global Crude Summit Americas in Houston, Texas, on 6 February. "The fact that the initial tariffs around Canada and Mexico were so punitive at 25pc, how someone handles that risk ... is extremely difficult," said Simon.
The costs of potential tariffs against the US would be split between producers, refiners and customers, according to US refiner Delek.
The threat of tariffs have prompted some US refiners to show interest in Brazilian crudes, according to Brazilian independent oil and natural gas company Prio.
More Canadian crude will flow to Asia-Pacific markets from the 590,000 b/d Trans Mountain Expansion (TMX) pipeline if US tariffs on Canada are implemented, according to a report by consultancy Wood Mackenzie.
In the Middle East, the Iraqi parliament's approval of a key budget amendment has improved prospects for a restart of crude exports from the northern Kurdistan region. But several outstanding issues mean it could still be some time before the region's crude actually begins to flow again after a near two-year halt, according to Iraq's state marketer Somo.
Insurance premiums for Red Sea shipping routes have become notably volatile this week as insurers struggle to assess war risk, just as vessel operators were considering returning to the region. Market participants indicated they are facing war risk insurance premiums (AWRPs) up to three times higher than that at the start of the week.
AWRPs are normally stable and typically only rise because of an increased military threat, which makes this week's increase unusual given the avowed cessation of hostilities by the Yemen-based Houthi armed group, which had been operating a military campaign against Red Sea shipping in solidarity with Palestinians in Gaza.
By YouLiang Chay