Brent Prices Slip as Russia Tightens Fuel Supply Amid Hornuz Hopes
Oil prices are edging lower as hopes of improved shipping through the Strait of Hormuz outweigh fresh supply risks from Russia. Brent crude has fallen around 0.3% to $89.45 a barrel, while US West Texas Intermediate slipped 0.3% to $83.31. The market is now caught between two geopolitical forces: Middle East diplomacy is removing some risk premium, while Ukrainian attacks on Russian energy infrastructure are tightening the refined-fuel outlook.
Russia has imported over 1 million barrels of gasoline by sea since late July to address domestic shortages. Moscow is also preparing to extend restrictions on diesel exports through September after Ukrainian attacks left several refineries idle and contributed to recurring regional fuel shortages. Refinery damage affects gasoline, diesel, and jet-fuel availability even if Russia can continue pumping crude.
ANZ Research analysts see fading hopes for an immediate reopening as supporting crude after the earlier selloff. In their view, actual progress on restoring traffic remains more important than announcements around a potential framework. A functioning Hormuz corridor would strengthen the bearish case, while a breakdown in diplomacy or deeper Russian refinery outages could quickly put $90 Brent back in play.