WTI Oil Prices Slip Below $80 as Traffic Through Hormuz Recovers

Oil prices continued to slide on Friday, dipping below $80.00 for the second consecutive day, according to WTI data.

The decline is attributed to a moderate recovery of sea traffic through the Strait of Hormuz, with reports indicating that oil traffic has increased to roughly 30-35% of pre-war levels.

This development suggests that oversupply conditions in global markets may be reasserted if traffic reaches levels from 50% to 60% of those seen before the conflict started.

However, tensions in the Gulf remain high, with recent attacks on US bases in Kuwait and reports of intercepted missiles launched from Iran.

Experts at TD Securities caution that disruptions are contributing to 'reduced flows and global tightening of the energy market,' which is viewed as supportive of further upside in crude oil prices.