Oil Books 2nd Weekly Loss Amid Hormuz Deal Hopes


   
   SECAUCUS, NJ (DTN) -- Crude futures rose Friday (8/7) but the gains were not 
enough to offset a second straight week of losses in a market hampered by 
expectations for a peace deal for the Middle East and its key energy waterway, 
the Strait of Hormuz.

   NYMEX WTI crude for September delivery settled the day up $0.89, or 1.2%, at 
$78.18 bbl. For the week though, the U.S. crude benchmark fell 9%, extending 
the prior week's 5% drop.

   ICE Brent crude for October finished the session up $1.06, or 1.3%, at 
$83.55 bbl. The global crude benchmark was down 9% on the week, after a prior 
weekly loss of 7%.

   Among refined products, NYMEX ULSD for September delivery closed up $0.0204, 
or 0.5%, at $3.9024 gallon. The diesel futures contract fell 5% on the week.

   NYMEX RBOB for September climbed $0.0468, or 1.6%, to finish at $2.9853 
gallon. The gasoline futures contract tumbled about 4% on the week, echoing 
after the prior week's decline.

   While prices rebounded in the latest session, the upward momentum was 
limited as market participants pinned hopes on the U.S. and Iran agreeing to 
some sort of deal soon to reopen shipping on the Hormuz -- the waterway that in 
normal times oversaw the transit of around 20 million bpd of global energy 
liquids.

   After a ceasefire abandoned in mid-July and brief resumption in fighting, 
expectations have grown for another formal truce amid reports that Iran and 
neighboring Gulf states were negotiating a temporary deal to reopen the Strait.

   But any transit agreement might have trouble gaining U.S. approval as Iran 
appears determined to charge fees of between 5% and 7% on cargoes passing 
through the strait -- a move Washington has vowed to oppose.

    




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