Hormuz Reopening Floods Oil Markets With Supply as 60-Day US-Iran Waiver Frees Cargoes
Updated
Updated · Bloomberg · Jun 24
Hormuz Reopening Floods Oil Markets With Supply as 60-Day US-Iran Waiver Frees Cargoes
3 articles · Updated · Bloomberg · Jun 24
Summary
Oil markets are rapidly tipping into oversupply as cargo flows through the Strait of Hormuz accelerate after the US-Iran agreement reopened the waterway.
That surge hit a market already loosened by strategic stockpile releases, weaker Chinese demand and Iranian barrels moving out of the Gulf on “dark” tankers, traders said.
The reopening follows a 60-day US sanctions waiver for Iranian crude sales and a sharp rebound in traffic, after 109 vessels transited Hormuz over three days and a 500-600 ship backlog remained.
The added barrels ease immediate supply fears tied to the strait but now raise pressure on prices as delayed Gulf exports reach the market at once.