Oil prices fell amid rising shipments through the Strait of Hormuz
On June 26, global oil prices fell by about 2% due to an increase in the number of tankers passing through the Strait of Hormuz.
As of 04:21 GMT, Brent crude futures had fallen by $1.47 (1.95%) to $73.79 per barrel. Meanwhile, U.S. WTI crude lost $1.44 (2%), falling to $70.48 per barrel.
The price decline is attributed to a resumption of supply activity, particularly after Saudi Aramco resumed loading crude oil at the Ras Tanura terminal in the Persian Gulf following a nearly four-month hiatus, according to LSEG data.
According to market reports, two very large crude carriers (VLCCs) had already been loaded, with another one waiting in line. Each of these vessels can carry up to 2 million barrels of crude oil.
“We’re seeing a general sell-off as the market reacts to increased shipments through the Strait of Hormuz and the fact that China has not yet seen a surge in demand for crude oil,” said Jun Guo, a senior analyst at Sparta Commodities.
It is also reported that this week, oil shipments through the Strait of Hormuz reached their highest level since the conflict with Iran began in February, putting additional pressure on the market.
Despite this, analysts note that uncertainty regarding the security of the maritime route continues to affect investor sentiment.
This was reported by Reuters.
The day before, global oil prices plummeted, falling to their lowest levels since the start of the large-scale armed conflict in the Middle East involving the U.S., Israel, and Iran.
Qatar has begun preparing its tanker infrastructure and plans to restore liquefied natural gas (LNG) production to normal levels within a few weeks.
Fertilizer exports through the Strait of Hormuz have risen to pre-war levels, according to Bloomberg.
Global oil prices fell sharply on Thursday, June 19, amid reports of an agreement between the U.S. and Iran. Brent futures fell to $77.96 per barrel, and WTI futures to $74.96, the lowest levels since late February.
