Oil

Strait of Hormuz, the world’s main oil artery

A U.S. official stated on Tuesday that U.S. president Donald Trump would restore his "maximum-pressure" campaign against Iran and bring its oil exports to zero. Iran has threatened repeatedly to close down the Strait of Hormuz as a response to Western pressure. This would lead to the closure of trade in the region and a rise in oil prices. Here are some details on the Strait of Hormuz: The Strait is located between Oman, Iran and the Gulf of Oman. It connects the Gulf of Oman in the north with the Arabian Sea to the south. The shipping lane is only two miles wide (three kilometers) in each direction. It's narrowest point is 21 miles wide (33 km). Why does it matter? Around a fifth (or 18-19 million barrels of oil per day) or fuel, condensate, and oil are transported through the Strait. OPEC member Saudi Arabia, Iran and the UAE export the majority of their crude oil via the Strait mainly to Asia. Saudi Arabia and the United Arab Emirates have been looking for other routes to bypass this Strait. The U.S. Government says that existing UAE…

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Russian oil for March delivery to India at a lower discount

Sources say that traders offer Russian oil for March delivery to India at a lower discount After a temporary delay caused by the recent U.S. trade sanctions, which have increased trading costs, Indian sources in the refining industry said that traders have now resumed their offers to Indian refiners of Russian crude cargoes. Washington imposed sanctions on Russian producers and tankers earlier this month, disrupting the supply of the world's no. The number 2 oil producer in the world has been slowed down and ship availability is tightened. India has become the biggest market for Russian oil shipped by sea, sold at a discounted price after Western nations stopped buying it as a response to Russia’s invasion of Ukraine 2022. Sources said that while Russian crude is typically offered in the middle of the month, two months before the delivery period, only this week new trading entities began showing cargoes for delivery in March. The number of cargoes available has also decreased, while the discounts on Urals crude have shrunk compared to last year. This is because freight rates have increased after Moscow began looking for vessels to…

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