economy
Oil prices erase wartime gains as supply concerns ease with Hormuz tanker traffic resuming
Oil prices fell as investors bet global crude supplies will improve, as tankers stranded in the Persian Gulf for months have begun leaving the Strait of Hormuz.
TL;DR
- Oil prices dropped, erasing wartime gains, as tankers began leaving the Strait of Hormuz.
- More than 20 oil tankers carrying 35 million barrels have passed through the Strait since a U.S.-Iran agreement.
- The vessels were stranded for over three months after Iran initially shut the waterway.
- Citi suggests the worst is over for commodities curve-carry strategies and expects Brent crude to fall to $60-$65/barrel.
- Iran's navy warned that safe passage through the Strait is conditional on following Tehran's designated routes.