Oil prices continued their decline on Thursday, nearing pre-war levels, as stranded tankers exited the Strait of Hormuz following a tentative agreement to end the U.S.-Israeli war with Iran, easing supply concerns.
اضافة اعلان
By 00:04 GMT, Brent crude futures for August delivery fell 40 cents, or 0.54%, to $73.34 a barrel. U.S. West Texas Intermediate (WTI) crude dropped 27 cents, or 0.38%, to $70.07 a barrel.
The Brent price for August was lower than the September futures, which stood at $73.59, signaling ample near-term supply.
"The speed of this decline has caught many by surprise, as markets expect Middle Eastern oil to return at a much faster pace than many had anticipated just two weeks ago," IG analyst Tony Sycamore said in a note.
Brent crude dropped by more than three dollars on Wednesday as supply fears eased, while WTI fell by nearly three dollars at settlement.
U.S. Energy Secretary Chris Wright told a forum on Wednesday that flows through the Strait of Hormuz were close to their levels before the outbreak of the war with Iran, noting that at least 20 million barrels had exited the strait over the past 24 hours.
He added that a full return to normalcy would take a few weeks due to the necessity of clearing mines from the strait.
Oman opened temporary routes yesterday to facilitate the exit of tankers from the Strait of Hormuz, with the International Maritime Organization (IMO) and Omani authorities coordinating ship movements.
The Prime Minister of Qatar visited Oman for talks on launching negotiations with Iran, Iraq, and Gulf states regarding the future management of the strait.
The U.S. Energy Information Administration (EIA) said yesterday that total crude oil inventories in the United States hit their lowest level since 1984 last week, driven by high refining demand and government draws from the emergency reserve. However, markets did not react to the data as traders focused their attention on the Strait of Hormuz.
Reuters
