FACTBOX: Oil markets volatile ahead of Trump deadline as energy attacks continue

International crude prices remained elevated April 6 as US President Donald Trump set an April 7 deadline for Iran to reopen the Strait of Hormuz.

"Markets continue to be roiled by the heightened uncertainty surrounding this unprecedented Middle East geopolitical tensions that wreak havoc," UOB analysts said in an April 6 research note, pointing to inflation, growth and oil supply risks.

The conflict, now in its sixth week, has seen escalation in attacks on energy and petrochemical infrastructure across the region, with facilities in Iran, Kuwait, Bahrain, Iraq and the UAE struck over the past weekend.

The following are key facts about the state of energy flows and infrastructure in the Middle East:

Trade flows

While the Strait of Hormuz remains effectively closed to most commercial traffic since the war began Feb. 28, daily transits have doubled in early April as Iran let more countries to use the key chokepoint handling 20% of global oil flows in normal times.

• At least 12 ships transited the Strait of Hormuz on April 5, down from 15 the previous day, which was the highest since March 1, according to S&P Global Commodities at Sea.
• The recent uptick brings the average daily vessel transits to 12 over the first five days of April, nearly double the March pace of six ships daily, CAS data shows. This compares with 135 daily transits in February.
• Iran, aside from its own tankers, has allowed ships linked to Asian countries, including China, India, Pakistan, and Thailand, to transit Hormuz.
• The crude oil tanker Ocean Thunder, carrying 1 million barrels of Iraqi Heavy Crude, exited the Strait of Hormuz on April 5 following reports that Iran would allow Iraq to use the strait.
• The Habrut, owned by Oman's Asyad Shipping, and the Dhalkut, owned by China's ICBC Financial Leasing, became the first non-Iranian VLCCs to transit Hormuz during the war on April 2.
• Several LNG and LPG carriers owned by Japanese shipping group Mitsui OSK Lines and a containership operated by CMA CGM, a French container line, also passed through Hormuz earlier this month.

Prices

Crude prices remain elevated as Trump's deadline intensified supply disruption concerns, with limited progress on reopening the Strait of Hormuz.

• The ICE June Brent futures contract rose fell 0.21% to $108.80/b at 1439 GMT April 6. NYMEX May light sweet crude was down 0.48% at $111.01/b at 1550 GMT.
• The Platts Dubai crude benchmark was assessed at $120.20/b on April 6, down from the war peak of $169.75/b on March 23 but double pre-war levels around $70/b, and up 4.89% from the previous session.
• The June Brent-Dubai exchange of futures for swaps was pegged at $16.34/b on April 6, up $1.40/b from the previous close.
• Platts, part of S&P Global Energy, assessed Dated Brent at $141.365/b on April 2, up $12.91/b from the previous session to its highest value since July 2008.
• The VLCC index for non-scrubber-fitted non-eco ships dropped 3% to $242,362/d on April 2, down over $200,000/day from the March 4 all-time high of $517,966/d.

Infrastructure

Energy, petrochemical and logistics infrastructure across the region continues to face widespread attacks.

• Multiple petrochemical production units near Iran's South Pars gas field were struck by US-Israeli airstrikes April 6, with impacts to utility companies Damavand and Mobin, which provide electricity, water and steam for petrochemical plants. This is the second time South Pars has been struck, with some petrochemical production temporarily knocked offline in March after previous strikes.
• Six plants in Iran's Special Economic Petrochemical Zone at Mahshahr were hit by missiles April 4, effectively shutting one of the country's biggest petrochemicals hubs, Iranian media reported.
• Kuwait Petroleum Corp. said April 5 that plants affiliated with Kuwait National Petroleum Co. and Petrochemical Industries Co. were attacked, resulting in fires at several sites and causing significant material damage.
• Multiple fires broke out at Kuwait's 330,000 b/d Mina al-Ahmadi refinery April 3 as it came under attack by drones for the fourth time during the war. Mina al-Ahmadi and Mina Abdullah refineries still have most of their units halted after recent drone attacks.
• Kuwait shut two power-generating plants after an Iranian drone attack caused "significant material damage" April 5, with the plants also associated with water desalination.
• Bahrain's Gulf Petrochemical Industries Company reported that several of its petrochemical facilities caught fire after being targeted by Iranian drones April 5, with all fires brought under control and extinguished.
• Bahrain's Bapco Energies said a tank fire at one of its storage facilities was extinguished April 5 after an Iranian drone attack earlier in the day.
• Maysan Oil Co.'s storage facilities in Iraq's Buzurgan oil field, close to the border with Iran, were attacked by unidentified drones April 4, with no injuries reported.
• Operations at the Khor Fakkan port in Sharjah, UAE, were suspended April 5 due to "technical difficulties" after falling shrapnel from an intercepted airstrike caused a fire.