Diplomatic Hopes Fail to Boost Oil Prices as Disruptions Persist

Oil prices are down today after reports emerged that Oman has presented a plan to allow Iran to collect voluntary fees for using the Strait of Hormuz. The plan is backed by Gulf states, and this news has been met with optimism in diplomatic circles. US President Trump said his administration is having good talks with Iran.

However, despite these developments, oil flows have not improved. In fact, the market continues to book profits after last week's surge above $100 for Brent crude. This marks the second straight session of selling on diplomatic headlines.

The problem is that the barrels that were missing due to supply disruptions last week are still missing. Traffic through the Strait of Hormuz remains a fraction of normal levels, and the Red Sea continues to take fire. Saudi Aramco has also shut its 400,000 barrel-per-day Jazan refinery following an attack.