Supply Risks Persist Amid Ongoing Uncertainty at the Strait of Hormuz

Ongoing uncertainty around the Strait of Hormuz continues to support oil prices. While US President Donald Trump said Washington is 'semi-negotiating' with Iran, significant hurdles remain before any agreement is reached.

The Strait of Hormuz is a critical waterway for global energy trade, and disruptions have had a significant impact on oil markets in the past. The US-Iran negotiations are ongoing, but reports indicate that Iran and Oman are nearing an agreement on a shipping route through the strait.

In other news, speculative sentiment has turned more cautious, with money managers reducing net long positions in both NYMEX WTI and ICE Brent. This is the second consecutive weekly decline for these positions.