Commodities
Hormuz Optimism Overwhelms Market Reality
Oil prices continued their decline on Wednesday for the third consecutive session as traders bet that diplomacy would soon reopen the Strait of Hormuz.
The Brent crude benchmark fell 1.2% to $78.44 a barrel, while West Texas Intermediate dropped 1.4% to $74.70.
Despite Qatar's announcement that mediators are making progress and US officials predicting an agreement could come soon, tanker traffic remains depressed, with little evidence of recovering exports.
ING strategists Warren Patterson and Ewa Manthey warned that the market may be 'getting a bit ahead of itself' in its optimism about Hormuz reopening.