Oil Slides as Strait of Hormuz Reopens, Market Focus Shifts to Demand Outlook
Oil prices traded lower on Friday as markets evaluated the impact of the interim U.S.-Iran agreement and early signs that shipping activity through the Strait of Hormuz is returning to normal.
Brent crude futures for August fell 0.45% to $79.49 per barrel, while U.S. West Texas Intermediate (WTI) for July declined 0.31% to $76.36 per barrel.
U.S. Vice President JD Vance reported that over 12 million barrels of oil had crossed the strait overnight. “The Iranians, for the second consecutive night, did not fire at any ships in the Strait of Hormuz,” Vance told reporters. “So far, they are honoring their commitment.”
Separately, OPEC Secretary General Haitham Al Ghais told CNBC that the organization does not expect oil demand to peak in the near future and rejected International Energy Agency forecasts suggesting a looming global supply glut. “We focus on fundamentals and actual figures, rather than hypotheticals,” he said.
Market analysts expect oil prices to trade between $75 and $82 per barrel in the near term. Brent has fallen roughly 36% from its peak during the conflict, according to Tiago Lacerda of Axi. “The focus now is on how quickly physical shipping resumes, as major shipping lines have not fully restarted transit and insurance costs remain high, keeping the market cautious about the pace of normalization,” he added.
Source : Newsmaker.id
