TotalEnergies CEO says Middle East producers selling stored crude at discounts

Middle East oil producers are moving to sell large crude inventories accumulated during recent Gulf tensions, TotalEnergies Chief Executive Patrick Pouyanné said. Speaking at the Rencontres Économiques conference in Aix-en-Provence, France, Pouyanné said producers in the region "built up large stocks and need to urgently offload them." He said tanker operators avoiding the Strait of Hormuz because of security risks have pushed producers to offer sharp discounts on crude, contributing to lower prices. Brent crude has retreated to around $72 a barrel, while gasoline and diesel prices still reflect crude levels of $95 to $100 a barrel, according to Pouyanné. Pouyanné estimated the market may need three to four months to rebalance. He added that recent disruptions in the region continue to weigh on energy markets and that shipping concerns are keeping gasoline and diesel inventories limited.