Brent Crude Sept’ Futures ($US/barrel)

Crude oil initially jumped on the escalation of fears around the Strait of Hormuz last week but come Friday there was no panic, just an orderly bounce after a strong downtrend. Oil has opened higher this morning after the ongoing strikes over the weekend but at this stage we don’t envisage sustained strength back above US$80/barrel.

• We can see crude oil rotating in the US$70-80 region over the coming weeks as it did in early June.