Brent Crude Tumbles as Hormuz Hopes Meet Russian Supply Risks
Oil prices have been trending downward as hopes of improved shipping through the Strait of Hormuz weigh against fresh supply risks from Russia.
The price of Brent crude has fallen about 0.3% to $89.45 a barrel in early trade, while US West Texas Intermediate slipped 0.3% to $83.31.
The market is now caught between two geopolitical forces: Middle East diplomacy is removing some risk premium, while Ukrainian attacks on Russian energy infrastructure are tightening the refined-fuel outlook.
Iran and Oman have moved closer to a framework for managing shipping through the Strait of Hormuz, including a temporary corridor and negotiations over the waterway's future administration.
Russia has imported more than 1 million barrels of gasoline by sea since late July to address domestic shortages, according to vessel-tracking data from S&P Global Commodities at Sea and Kpler.