Oil Prices Continue to Fall: Key Factors
26 June 12:36
Oil prices are falling sharply on Friday, June 26, amid expectations that fuel supplies to the global market via the Strait of Hormuz will resume. This was reported by "Komersant Ukrainian", citing “Interfax-Ukraine. “
As of 8:14 a.m., the price of August Brent futures on the London-based ICE Futures exchange has fallen by $1.51 (2.01%) to $73.75 per barrel. On Thursday, the contract rose by $1.52 (2.1%) to $75.26 per barrel.
WTI crude oil futures for August delivery on the New York Mercantile Exchange (NYMEX) electronic trading platform have fallen by $1.50 (2.09%) to $70.42 per barrel. At the close of the previous session, the price of these contracts rose by $1.58 (2.3%) to $71.92 per barrel.
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Saudi state-owned company Saudi Aramco resumed fuel shipments on Friday from the Ras Tanura terminal, which had been out of operation for nearly four months, according to LSEG data. Two supertankers are already loading oil at the terminal, with another one waiting in line. Each of these tankers is capable of carrying 2 million barrels of oil.
Earlier, U.S. Energy Minister Chris Wright stated that the volume of ship traffic through the Strait of Hormuz is approaching pre-conflict levels. In particular, 72 vessels carrying 20 million barrels of oil passed through the strait on Wednesday, Wright reported.
“The market is reacting to the increase in fuel flows through the Strait of Hormuz, while demand for oil in China has not yet begun to recover,” noted Jun Goh, a senior market analyst at Sparta Commodities.
The day before, The Wall Street Journal, citing two senior U.S. officials, reported that Iranian forces attacked a cargo ship near the Strait of Hormuz on Thursday. The ship, flying the Singaporean flag, was targeted. No one was injured in the attack, but the ship sustained damage.
Due to this attack, the United Nations International Maritime Organization (IMO) suspended the evacuation of approximately 11,000 sailors stranded in the Persian Gulf.
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