Oil Prices Waver As Iraq Restarts Exports And Hormuz Traffic Stabilizes

Energy futures are drifting higher this morning, save for WTI crude oil contract, which is trading lower news that Iraq has made a deal to resume exporting oil from its Kirkuk fields through Turkey’s Ceyhan port, which should see at least 250,000 bpd restored to the global market. American crude oil traded down to ~$92 per barrel in the overnight session, but has since bounced and is currently just above $95.

Its been reported that 90 ships have now passed through the Strait of Hormuz since the onset of the war, the majority of which are Iranian vessels, or boats belonging to countries that have entered into negotiations with Iran, like India and Pakistan. The average number of ships that transit the straight during peacetime is around 140 per day, 50% of which are oil and gas tankers.

Yesterday six trade associates wrote a letter to the White House urging the president to finalize the 2026 and 2027 Renewable Fuel Standard, citing energy security and certainty in the agricultural sector as reasons for doing so. Last week RIN prices popped to 3-year highs after the EPA’s proposed RFS included a 70% reallocation of waivers for small refineries, and dropped the RIN generation ratio for RD from 1.7 to 1.5 credits per gallon.

In local news:

Marathon has resumed production at its refinery in Catlettsburg after a power disruption knocked it offline over a month ago.

PBF’s Torrance refinery experienced an unplanned flaring event yesterday morning, as reported by the South Coast Air Quality Management District. No indication if it was related to the plant’s alkylation unit that just got overhauled last month.

Retail gasoline prices have surged past $3.75 for the first time since October 2023, leading some to question how exactly will the SPR release announced by the DOE last weak, curb prices at the pump in places like Arizona.