Hormuz Tensions Ease, Russian Refinery Disruptions Weigh on Crude Oil Prices

The recent easing of tensions in the Strait of Hormuz has led to a volatile adjustment in crude oil prices. WTI crude weakened again after a slight rebound in the previous session, trading near $81.80 per barrel at one point. The core pricing factor remains whether shipping through the Strait can gradually resume.

Iran and Oman have made progress on navigation arrangements, alleviating investor concerns about prolonged disruptions to crude oil supplies. However, diplomatic progress does not mean supply risks have been eliminated. Subsequent signals from Iran indicate that there is still room for further negotiations.

Meanwhile, new disruptions have emerged on the Russian energy supply side. The NORSI refinery in Russia suspended crude processing following a drone attack, affecting approximately 15 million tons of annual crude processing capacity and substantial gasoline and diesel production capabilities.