Arctic: Energy Daily - E&P Sector Report, ODL, BONHR, OTL, DDRIL, +

Research evidence excerpt

Arctic: Energy Daily - E&P Sector Report, ODL, BONHR, OTL, DDRIL, +

Energy Daily

12 May 2026 | 09:06

E&P Sector Report, ODL, BONHR, OTL, DDRIL, + Key figures & indices

Oil markets: Prices gain on Hormuz deadlock

Crude prices are moderately higher Tuesday morning, with Brent up +$0.70 to near $105 as the

market is becoming increasingly skeptical that a deal to reopen Hormuz can be reached quickly.

Yesterday, Brent gained +$2.92 to $104.21, reacting to President Trump’s comments that Iran’s

counter-proposal to his 14-point plan, which Iran delivered Sunday, was “totally unacceptable”.

Trump reinforced that view yesterday by saying that the ceasefire was on “life support”, but, in

typical fashion, still provided some hope by saying that a diplomatic solution still is “very possible”.

Meanwhile, Israel continues to strike southern Lebanon, defying the ceasefire there. The market’s

attention is now centering on Trump’s trip to China and his meeting with President Xi on Thursday,

which is fanning some hope that Trump will get China on board to apply additional pressure on Iran

to come to the negotiating table. On the fundamental front, the market awaits the monthly report

from the EIA and the weekly API report to get a better fix on how the crisis is playing out.

E&P sector report: The bull case has strengthened

We upgrade the E&P sector as the bull case has strengthened in our view. First, despite multiple

diplomatic efforts, a deal that would reopen the Strait of Hormuz has yet to materialize, and the

gap between the parties appears wide. We assess that Iran is deliberately pursuing a strategy of

delay against the U.S., betting that time works in its favour – suggesting that the current status

quo could persist longer than previously anticipated.