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Oil falls for third straight session as Gulf shipping corridor plans advance
Brent crude was around $85 a barrel early Wednesday, down more than 9% for the week, with WTI near $80 as tanker activity signaled expectations for easing Strait of Hormuz tensions.
Brent crude futures fell for a third straight session after Iran and Oman advanced plans for a temporary maritime corridor through the Strait of Hormuz, with traders pointing to improving expectations for Gulf shipping flow. OilPrice said Brent dropped to about $85 a barrel early Wednesday, while West Texas Intermediate traded around $80.
OilPrice also noted that crude prices remain significantly higher for the year, up more than 41% following the US-Iran conflict and ongoing disruptions at the key Hormuz chokepoint.
According to the article, Iran and Oman discussed an interim framework for a temporary joint shipping corridor, with plans to negotiate a permanent route within 30 to 60 days. No start date was given for when the temporary reopening would take effect.
The report added that Iraq's Persian Gulf export terminals saw a surge in oil loadings early in the week, a signal that Gulf producers expect tensions to ease. Satellite imagery cited by OilPrice showed seven tankers carrying Iraqi cargoes with combined capacity of roughly 13 million barrels, and TankerTrackers reported roughly 25 million barrels counted in the Gulf of Oman, alongside multiple ship-to-ship transfer sessions.
Latest closeWTI crude $82.40 ▲1.4%|Brent $88.59 ▲1.8%