Oil fell to $77 after tanker traffic resumed through Hormuz
Kyiv • UNN
Brent oil prices fell below $77 per barrel due to increased tanker passage through the Strait of Hormuz. The US and Iran have made initial progress in peace negotiations.
Global oil prices continued to decline amid an increase in the number of tankers passing through the Strait of Hormuz and signals of progress in negotiations between the US and Iran to end the war. This is reported by UNN citing Bloomberg.
Details
Brent crude fell below $77 a barrel, while WTI is trading near $73. Vessels are increasingly passing through the strait with their satellite tracking systems turned on, indicating growing confidence among shipowners. Additionally, the International Maritime Organization reported receiving security guarantees for shipping in the region.
Iran agreed with the US to create a "hotline" in the Strait of Hormuz23.06.26, 04:58 • 4744 views
The US and Iran have reported initial progress in peace talks, although the sides still have significant differences. At the same time, Iran and Oman have begun work on a new management system for the Strait of Hormuz, including the issue of transit fees.
The market expects an increase in supplies
Additional pressure on prices is exerted by expectations of increased oil supply. The US has temporarily allowed the purchase of Iranian oil as part of the diplomatic process, and the Gulf countries are ramping up exports. In particular, the UAE has already restored production to nearly 85% of its pre-war level, while Kuwait and Iraq are also increasing supplies to the global market.
Despite this, some signals indicate continued tension in the market. According to the American Petroleum Institute, crude oil inventories at the Cushing storage hub in Oklahoma fell by another million barrels last week and could drop below the level considered the minimum necessary for stable system operation.