Brent Hits 30-week High

Brent crude oil was below $79 per barrel on Wednesday, hovering at its lowest level since early March amid expectations of a US-Iran deal that could rapidly add supply back to the global market. The potential interim agreement, expected to be signed Friday, could allow Tehran to resume oil exports immediately and ease restrictions on shipping through the Strait of Hormuz, prompting tanker operators to reposition vessels toward the region. The release of more than 100 oil-laden ships currently stuck in the Gulf could further boost supply. The International Energy Agency warned that the conflict may cause a larger-than-expected demand hit and contribute to a renewed global oil surplus. Brent prices have fallen nearly 40% from their conflict peak as geopolitical risk fades. The decline is also easing inflation concerns, with lower fuel prices helping consumers. However, US crude inventories continued to fall, with an industry estimate showing an 8.3 million-barrel draw last week.

Brent fell toward $78 per barrel on Wednesday, sliding for the fifth straight session and reaching its lowest level since early March, as expectations of increased supply continued to weigh on prices ahead of the signing of a peace agreement between the US and Iran. The two countries are scheduled to sign an interim deal in Switzerland on Friday, offering Tehran broad economic incentives, including the immediate resumption of its oil exports. Tankers from other nations are also expected to resume passage through the Strait of Hormuz once the agreement takes effect, although shipping companies remain cautious about its long-term durability. Additional supplies from the region are expected to replenish refinery inventories globally, alongside higher OPEC+ export quotas and increased output from the UAE, which left the cartel during the conflict. Meanwhile, industry data showed that US crude inventories declined by 8.3 million barrels last week.

Brent traded at three-month lows around $79 per barrel on Wednesday after falling for four straight sessions, pressured by expectations of increased supply following the anticipated peace agreement between the US and Iran. The two nations are set to sign an interim deal in Switzerland on Friday, granting Tehran broad economic incentives, including the immediate resumption of its oil exports. Tankers from other countries are also expected to resume transit through the Strait of Hormuz once the agreement takes effect, although shipping firms remain cautious about its long-term stability. Additional supplies from the region are expected to boost refinery inventories worldwide, alongside higher OPEC+ export quotas and increased production from the UAE, which exited the cartel during the conflict. Meanwhile, industry data indicated that US crude inventories fell by 8.3 million barrels last week.