WTI crude futures were little changed around $100 per barrel on Thursday, as traders tracked geopolitical developments in the Middle East and the summit between US President Trump and Chinese President Xi. Reports from Iran indicated that roughly 30 vessels had crossed the Strait of Hormuz in recent hours, and Tehran has reportedly begun allowing transit for some Chinese ships. At the same time, US Secretary of State Marco Rubio called on China to leverage its influence over Iran to help fully reopen the strait. According to the White House, Xi also signaled interest in increasing China’s purchases of US crude oil.
The International Energy Agency (IEA) reported that crude and fuel flows through the Strait of Hormuz declined by nearly 6 million barrels per day in the first quarter, and warned that the global oil market is likely to remain significantly undersupplied until October, even if the conflict is resolved next month. Heightening supply concerns further, Saudi Arabia informed OPEC that its oil output has fallen to its lowest level since 1990.
