Hormuz Deal Sparks Decline in Crude Oil Prices
Crude oil prices have been falling due to growing optimism that the US and Iran are nearing a deal to reopen the Strait of Hormuz. This would allow for increased oil shipments through the waterway, putting downward pressure on crude prices.
The draft deal between Iranian and Omani negotiators is awaiting final approval from Iran's supreme leader. Meanwhile, the US, Iran, and Oman are reportedly close to an interim 60-day accord to reopen the waterway, with no tolls or fees for inbound vessels using a northern lane and outbound traffic using a southern one.
Russian crude exports have also been adding to global oil supplies, weighing on prices. Data compiled by Bloomberg shows that the four-week average of Russian crude exports remains above 4 million bpd in the period to July 26 and rose to 4.13 million bpd through June 28.