Energy futures moved higher midday Thursday as the market continued to monitor a recovery in Middle East oil supplies and improving flows through the Strait of Hormuz.
As of 11:45 a.m. ET, the August West Texas Intermediate contract was trading $1.10 higher at $71.44/bbl, with September up $1.10 at $71.03/bbl. August ICE Brent crude rose 88cts to $74.62/bbl, with the September contract up $1.08 at $74.95/bbl.
Refined product futures were also trading higher, with the July RBOB contract up 8.06cts at $2.9624/gal and August up 7.78cts at $2.8693/gal. July ULSD rose 8.55cts to $3.2617/gal, with August trading 7.88cts higher at $3.1905/gal.
Crude prices have retreated sharply in recent sessions as the market priced in improving supply prospects following a preliminary U.S.-Iran agreement and increased oil movements through the Strait of Hormuz. Earlier Thursday, Brent crude traded near $73/bbl, around its lowest level in three months and near levels seen before the conflict-driven rally that began in February.
Rystad Energy said shut-in production across the Gulf has fallen to 9.6 million b/d from 11.7 million b/d three weeks earlier. The firm attributes "faster-than-expected" recovery to returning production across the region, particularly in Iran, alongside improving export conditions and growing tanker activity.
