Oil Prices Are Falling and Stocks Are up. Traders Worry They’ve Gone Too Far
WTI fell nearly 10% on the week as tanker traffic is expected to resume, while traders warn the rally may be overdone.
- On Thursday, oil tankers began moving through the Strait of Hormuz after President Donald Trump signed a 60-day ceasefire memorandum with Iran on Wednesday, easing global supply concerns.
- A US blockade of the waterway, which usually handles 20 million barrels of oil daily, had paralyzed shipping and sent prices soaring since late February, prompting the diplomatic breakthrough.
- Shipping experts at BIMCO warn the central channel remains "mined and un-navigable," while data from Vortexa shows 40 tankers carrying 80 million barrels are preparing to transit.
- Markets responded positively Friday, with WTI crude settling down 10% on the week while Japanese and South Korean stock indices surged as inflation fears receded.
- Analysts like Madison Cartwright of Commonwealth Bank warn the peace remains fragile, as toll-free transit is guaranteed for only 60 days before potential tolls or conflict arise.
12 Articles
12 Articles
40 supertankers with almost 80 million barrels of oil are waiting in the Persian Gulf for the passage through the Strait of Hormuz. But whether the passage can actually be safely and reliably used again is still open.
80 Million Barrels of Crude Are Lined Up to Exit the Strait of Hormuz
Tankers carrying a total of 80 million barrels of crude are preparing to move through the Strait of Hormuz after the signing of the preliminary deal between the United States and Iran, Bloomberg reported today, citing data from Vortexa. The crude is on 40 tankers, of which 21 will be heading for Asia, with five going to China as their final destination and five others bound for Malaysia and Singapore, key regional transshipment hubs. None of the…
Oil price continues to fall as supply moves through Strait of Hormuz after Iran war pact
Oil prices fell on Friday as prospects brightened for more supply after oil tankers began moving through the reopening Strait of Hormuz following a peace deal between the United States and Iran. By 05:28am, Brent crude futures fell 43 cents, or 0.54%, to $79.42 (R1,312) a barrel and US West Texas Intermediate crude slipped 17 cents, or 0.22%, to $76.43 a barrel, with the front-month July contract expiring on Monday. The more actively traded Augu…
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