Global oil prices edged lower following the entry into force of a peace agreement between the US and Iran and the resumption of transit through the Strait of Hormuz. This was reported by Bloomberg, according to UNN.
Details
West Texas Intermediate crude fell to around $76 a barrel after volatile trading on Wednesday. Meanwhile, Brent ended the session below the $80 per barrel mark. Traders are assessing the implications of the deal, the digital signing of which was reported by Iranian state television and a US official.
Market reacts to resumption of supplies
Analysts expect the deal to facilitate the restoration of full tanker traffic through the Strait of Hormuz, through which about a fifth of global oil supplies pass in peacetime.
Despite the price decline, the inventory situation remains tight. Specifically, oil stocks at Cushing – the largest commercial storage hub in the US – have dropped to approximately 20 million barrels, which many traders consider the minimum operational level.