Tight Balance Persists Despite Iran-Oman Route Developments

Tight balance persists in the oil market despite ongoing negotiations between Iran and Oman.

According to TD Securities' commodity strategists Ryan McKay and Bart Melek, heavy deal-related headlines are influencing energy markets but Crude Oil fundamentals remain tight.

The analysts highlight growing ship-to-ship transfers via the Omani route, which could increase flows from 5-6 million barrels per day to 7-8 million barrels per day.

However, total regional flow is still only at 50% of pre-war volumes, and any increased flow met with China demand results in little change to the supply-demand balance.