Oil prices have fallen below levels last seen before the Iran War started in late February as more oil tankers exited the strait of Hormuz.
The Guardian reports that Brent crude, the global benchmark, fell to a low of $72.24 a barrel on Thursday.
The price on Thursday was slightly lower than the day before the US and Israel launched missile attacks on Tehran on 28 February. Prices have fallen more than 20% this month.
Brent crude for August delivery was trading lower than that for September, which was priced at $73.59, signalling ample short-term supply.
Vessel traffic in the strait, a vital shipping passage, doubled over the previous 24 hours to its highest level since late February, according to CNN and MarineTraffic data.
Ipek Ozkardeskaya, senior analyst at Swissquote, said news that vessels are now transiting the strait of Hormuz with their satellite signals switched on had helped push down the oil price.
She added: “A combination of strategic inventory releases, a collapse in demand from top buyer China and a substantial number of tankers quietly leaving the Persian Gulf “dark” had contributed to a small oversupply in some important markets.”
Susannah Streeter, chief investment strategist at the Wealth Club, said: “Fears of a long-lasting global energy crunch induced by the Iran conflict are slinking away, with oil prices sinking back towards pre-crisis levels. Instead of relief coursing through European markets, there’s still a big dose of caution as the knock-on effects of the record-breaking heatwave collide with concerns about weak growth across the region.”
A Liberian-registered oil tanker made its way out of the strait on Thursday using a new route close to Oman that has been promoted by a UN maritime agency, despite threats from Iran’s Revolutionary Guards.
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