Oil Prices Steady Amid Strong Middle East Crude Transit Despite U.S.-Iran Tensions
Oil prices remained steady on Tuesday amid reports of robust crude oil transit through the war-torn Gulf region. According to trading firm Vitol, around 12 million barrels per day (bpd) of crude and 2 million bpd of refined products were transported out of the Middle East over the past seven to ten days, contradicting claims of significant disruptions due to the U.S./Iran conflict.
As of 1633 GMT, Brent crude was down 29 cents at $100.03 per barrel, while West Texas Intermediate rose 16 cents to $89.59. John Evans, an analyst at PVM, noted that the price of Brent has stabilized around $100 per barrel, with the assumption of increased crude transit dampening price volatility.
Saudi Arabia's energy minister, Prince Abdulaziz bin Salman, added to market confidence by announcing that oil pumped through the East-West pipeline to Yanbu had reached 5.8 million barrels as of Tuesday morning. Meanwhile, the International Energy Agency is set to discuss the details of a diesel stock release following the Group of Seven's agreement to release 100 million barrels of diesel and crude oil from emergency reserves.
The Energy Information Administration raised its oil price forecast for this year and 2027 due to falling global stockpiles, predicting Brent to average about $105 per barrel in the fourth quarter, up $14 from its previous estimate. For 2026, Brent prices are now expected to average about $98 per barrel, an 8% increase from the prior forecast.
In related news, major Gulf oil-producing companies called for external investments into new routes to bypass the Strait of Hormuz. Amir Nassar, CEO of Saudi Aramco, emphasized the need for collective investment in oil and gas infrastructure, stating that no country should face disruptions alone. Kuwait is reportedly in discussions with European partners to store more refined petroleum products closer to consumers in Europe.