Oil eases on signs US is loosening Iranian closure of Strait of Hormuz
Oil prices eased on Tuesday (May 5), after climbing by as much as 6 per cent in the previous session, on signs that the US Navy is loosening Iran’s closure of the key Strait of Hormuz waterway, potentially opening up supply from the key Middle East producing area. The US on Monday launched a new operation aimed at reopening Hormuz to shipping and Maersk said later that its Alliance Fairfax, a US-flagged vehicle carrier, exited the Gulf via the strait accompanied by US military assets, easing some immediate supply disruption fears. Brent oil futures for July fell US$0.68, or 0.6 per cent, to US$113.76 per barrel at 1am GMT (9am, Singapore time), after settling up 5.8 per cent on Monday. US West Texas Intermediate crude fell US$1.59, or 1.5 per cent, to US$104.83, after gaining 4.4 per cent in the previous session. “The successful escorted exit of the Maersk-operated vessel has helped ease some immediate supply disruption fears,” said Tim Waterer, chief market analyst at KCM Trade. “It shows that limited safe passage is possible …


