Oil touches prewar levels on rising Middle East supply
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ENGALURU: Oil prices fell on Thursday to their lowest levels since before the outbreak of the Iran conflict, as improving supply conditions in the Middle East eased market concerns.
Brent crude futures for August delivery declined $1.28, or 1.74 per cent, to $72.46 a barrel by 0845 GMT. US West Texas Intermediate crude fell $1.15, or 1.63 per cent, to $69.19 a barrel.
US Energy Secretary Chris Wright said oil flows through the Strait of Hormuz had nearly returned to pre-conflict levels, with more than 20 million barrels passing through the strategic waterway over the previous 24 hours.
He noted that a full return to normal operations could take several weeks as demining efforts continue in the area.
The resumption of tanker traffic through the Strait of Hormuz has followed an agreement reached last week to end the conflict involving the United States, Israel and Iran.
Improved supply conditions and expectations of increased Iranian oil exports contributed to lower crude prices. Physical crude cargo prices also weakened in several markets.
The Strait of Hormuz remains one of the world’s most important oil transit routes, carrying a significant share of global crude exports.ـــReuters
