Crude Prices Sink as Traders Bet on More Iranian Oil
Hormuz Shipping Confidence Is Still Shaky August WTI crude oil futures kept falling sharply during the week ending June 26.
Traders continued to take out the extra price they had added earlier because they worried about possible supply problems in the Middle East.
The contract moved between a high of $78.14 and a low of $68.90 before finishing at $71.53.
That was down $3.99, or 5.28 percent, from the week before.
Traders stopped focusing as much on the chance of oil supplies getting cut off in the Persian Gulf.
Instead, they paid more attention to the idea that more Iranian oil could soon reach the world market.
Even though weekly inventory numbers still looked tight, the latest news from the U.S.-Iran talks was seen as a big reason to expect easier supplies ahead.
Advancing Iran Agreement Removes More Geopolitical Risk Premium The main reason for the price drop was more good news about the agreement between the United States and Iran.
The deal aims to end the recent fighting and let normal oil shipping start again through the Strait of Hormuz.
Reports during the week said the two sides were working out final details on how and when the important shipping route would reopen.
They were also talking about letting Iran sell more of its oil again under a special waiver from U.S.
Traders saw these steps as clear signs that hundreds of thousands of barrels of Iranian crude could return to the global market sooner than expected.
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | +0.34% |
| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
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