Oil Steadies After 2-Day Plunge; U.S. Inventory Data Looms


   
Barani Krishnan
DTN Refined Fuels Market Reporter

   SECAUCUS, NJ (DTN) -- Crude and refined product futures steadied Wednesday 
(8/5) morning, rebounding from a two-day slide that erased more than 10% across 
energy markets, as new security threats offset diplomatic efforts for the 
Middle East.

   By 8:00 a.m. ET, NYMEX WTI for September delivery was up $0.31, or 0.4%, to 
$76.08 bbl. ICE Brent for October delivery advanced $0.79, or 1.0%, to $80.15 
bbl.

Among refined products, NYMEX ULSD for September delivery gained $0.0167, or 
0.4%, to $3.7872 gallon. September RBOB edged up $0.0043, or 0.2%, to $2.8565 
gallon.

   Wednesday's early bounce came as security risks re-emerged across Red Sea 
shipping routes. Houthi militants in Yemen claimed responsibility for a missile 
attack targeting a Saudi oil tanker off the coast of Yanbu, a major Red Sea 
crude export terminal for Saudi Arabia. The strike, along with reports of a 
separate commercial vessel coming under fire near the Strait of Hormuz on 
Tuesday (8/4), served as a stark reminder of ongoing physical hazards despite 
diplomatic headlines.

   The attacks undermined enthusiasm around reports that the U.S., Iran and 
Oman were finalizing an interim framework to restore navigation through the 
Strait of Hormuz. Qatari mediators confirmed that a draft proposal aimed at 
short-term de-escalation had been circulated among negotiating teams following 
discussions between Trump and Qatari Emir Sheikh Tamim bin Hamad Al-Thani. U.S. 
President Donald Trump repeated both his optimism that the vital waterway would 
reopen "very soon," and caution that Tehran would face severe military 
retaliation if it abandoned negotiations.

   Iran has been indifferent to Trump's threats while being focused on getting 
Persian Gulf states to agree to a path on the Strait it controls -- a maneuver 
Washington believes is aimed at collecting a toll from users of the waterway.

   On the inventory front, the U.S. Energy Information Administration is due to 
release crude, gasoline and distillates stockpile data for the week ended July 
31 at 10:30 a.m. ET. The American Petroleum Institute, in its own assessment 
for the week, reported Tuesday that domestic crude inventories rose by 2.69 
million bbl, versus consensus estimates for a draw of 2.0 million bbl.




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