Hormuz Is Reopening, Oil Might Be Done Falling

Oil prices are falling as ship traffic resumes through the Strait of Hormuz, easing supply constraints and signaling a normalization in flows. The article also notes that depleted sovereign petroleum reserves create a structural floor, with crude unlikely to fall below $65/barrel through year-end. The combination is bearish near term for oil, but limits downside risk.

Analysis

Oil prices are falling as ship traffic resumes through the Strait of Hormuz, easing supply constraints and signaling a normalization in flows. The article also notes that depleted sovereign petroleum reserves create a structural floor, with crude unlikely to fall below $65/barrel through year-end. The combination is bearish near term for oil, but limits downside risk.