Oil prices back to pre-war levels on rising Middle East supply
More than 170 ships have transited the waterway since June 18, Kpler said, as traders expect additional supply to keep pressuring prices.
- Benchmark oil prices fell more than $3 on Wednesday to their lowest level since before the Iran war, as supply concerns eased with more stranded oil tankers exiting the Strait of Hormuz.
- The Strait of Hormuz, a vital shipping route for regional oil and gas, was effectively blockaded following the outbreak of war between the United States and Iran in late February.
- Since the United States and Iran reached an agreement to reopen the route, more than 20 oil tankers carrying about 35 million barrels of crude have passed through the Strait of Hormuz.
- The Islamic Revolutionary Guard Corps Navy warned on Thursday that safe passage through the Strait of Hormuz is only permitted via routes designated by Tehran, noting vessels violating instructions would "face action."
- Citi analysts expect Brent to fall to $60 to $65 a barrel over the next 12 months as flows normalize, while the International Energy Agency estimated total oil exports reached almost 85% of prewar levels.
128 Articles
128 Articles
Maritime transport companies, insurers, defense and oil and gas producers are among the sectors that have seen their profits fire, as war and uncertainty rocked the world markets. According to Aljazeera, in terms of living money, no sector benefited more directly from the war than from energy. Before the conflict, about a fifth of the world's oil and liquefied natural gas (LNG) went through the Strait of Ormuz. At one time, the price of Brent oi…
Oil Price Drops To Pre-War Levels As Middle East Tensions Ease
Has the oil market finally found some breathing room?After months of turmoil triggered by the Iran war, oil prices have fallen back to levels last seen before the conflict began. Brent crude briefly slipped below $72.50 a barrel this week as shipping traffic through the crucial Strait of Hormuz slowly returned to normal.The turnaround follows recent US-Iran negotiations and a memorandum of understanding signed earlier this month. It opened a 60-…
However, the International Monetary Fund, through its spokesperson Julie Kozak, points out that it will take time for prices and trade flows in the Gulf to return to normal levels.
The relaxation of prices reflects the influx of cargo from the Arabian Gulf, with the resumption of traffic in the Strait of Ormuz.
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