PiCK
Oil Falls as Saudi-Led Red Sea Maritime Defense Coalition Plan Eases Supply Concerns; WTI Down 1%
Summary
- Saudi-led discussions on a multinational maritime defense coalition sent global oil prices lower.
- September Brent crude futures fell 1.4% to $86.88 a barrel, while WTI futures dropped 1.0% to $83.59.
- Oil prices, which had risen during the session after attacks on military facilities by the US and Iran, gave up those gains amid stabilization talks over the Red Sea and the Strait of Hormuz.
Forecast Trend Report by Period
Oil prices fell on July 30 as discussions advanced on a Saudi-led multinational coalition aimed at safeguarding freedom of navigation in the Red Sea.
Brent crude for September settlement closed at $86.88 a barrel on ICE Futures Europe, down 1.4% from the previous session. West Texas Intermediate for September settlement closed at $83.59 a barrel on the New York Mercantile Exchange, down 1.0%.
Saudi Arabia announced plans that day to launch a 14-nation multinational maritime defense coalition to protect international shipping and energy transport routes in the Red Sea.
The coalition includes Saudi Arabia, Kuwait, Qatar and Bahrain from the Gulf Cooperation Council, as well as Pakistan, Turkey, Egypt and Jordan.
Oil had climbed earlier in the session after the US and Iran struck each other's military facilities. It later erased those gains and turned lower on the coalition news.
US Central Command said a day earlier that it had resumed airstrikes on Iran after a six-day pause. The command said the strikes targeted Iranian military command facilities, missile and drone sites, and naval assets.
Iran's Islamic Revolutionary Guard Corps said on July 30 that it had attacked US military bases in Jordan and Kuwait in retaliation for the American strikes.
Iran is also continuing talks with Oman over management of the Strait of Hormuz. Oman has proposed a stabilization plan under which Iran would oversee the northern shipping lane and Oman the southern lane, while guaranteeing freedom of navigation through the waterway.
Ko Jeong-sam, Hankyung.com reporter, jsk@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.