Oil prices held steady Monday, sticking near levels seen before Iran conflict flared. Brent crude priced at $72.19 per barrel, up 7 cents, or 0.1 percent . U.S. West Texas Intermediate crude edged 12 cents higher to $68.81 per barrel .
Saudi Arabia slashed its official selling prices for Arab Light crude to Asia by $1.50 per barrel below Oman/Dubai average. Biggest cut since 2003. Move aligns with OPEC and allies,including Russia, planning to up output by 188,000 barrels per day starting August. But analysts say these increases are mostly on paper given ongoing conflict disrupting tankers through Strait of Hormuz.
UBS analyst Giovanni Staunovo noted market's dip partly due to previously stuck tankers now moving out of Gulf,boosting oil availability. Meanwhile,UAE cranked up crude output to nearly 3.8 million barrels per day in June after leaving OPEC to dodge production caps.
Eyes on U.S.-Iran talks over Strait of Hormuz,key oil export route. Robert Yawger, energy futures director at Mizuho,hinted Gulf producers might brace for price war, selling into slipping market .
Despite price pressures,PVM analyst Tamas Varga suggested lower prices could eventually drive up demand. Market's been flat last week, after month of declines pulling prices back to late February levels.
Ukraine's military claimed strikes on Russia's biggest oil refinery in Omsk,and facilities in Yaroslavl and Leningrad regions. Also, shipping giants Maersk and Hapag-Lloyd announced resuming some Suez Canal sailings . Many shippers had ditched Asia-Europe route amid Red Sea attacks during Gaza conflict.
Return of Suez Canal sailings likely to cut transit times by four weeks, per Hapag-Lloyd spokesperson. As oil market weathers these choppy waters,geopolitical tensions and production shifts are still steering pricing dynamics…
