economy
Oil drifts lower as Strait of Hormuz reopens, focus shifts to demand outlook
With immediate supply fears fading and tanker traffic returning to the Strait of Hormuz, traders are turning their attention back to oil demand and OPEC's outlook for the market.
TL;DR
- Oil prices were in choppy trade as markets assessed an interim U.S.-Iran deal and recovering shipping activity through the Strait of Hormuz.
- Vice President JD Vance reported that tankers carrying over 12 million barrels crossed the Strait and Iranians did not fire on ships, indicating adherence to a commitment.
- OPEC Secretary General Haitham Al Ghais stated OPEC does not expect oil demand to peak soon and rejected forecasts of an upcoming supply glut.
- Market analyst Tiago Lacerda suggested oil prices are likely to trade between $75 and $82 per barrel in the near term.
- Market caution remains regarding the speed of normalization, as major shipping lines have yet to resume transits and insurance rates are elevated.