World oil prices fell below $75 per barrel, resulting from an increase in the number of tankers ready to exit the Strait of Hormuz. The price drop is the largest since the beginning of the military conflict in the Middle East in February.
On June 24, at the London ICE Futures exchange, August Brent oil futures fell by $3.28 or 4.27%, reaching $73.52 per barrel. Simultaneously, prices for August futures of the American WTI brand on the New York Mercantile Exchange NYMEX decreased by $3.35 or 4.58%, to $69.86 per barrel.
The cause of the price drop was the restoration of oil supplies through the Strait of Hormuz. This was facilitated by signs of a ceasefire between the USA and Iran, as well as a temporary 60-day lifting of Washington’s sanctions against Tehran, allowing Iran to increase oil exports. The easing of tensions in Lebanon also reduced the geopolitical impact on the oil market.
Analysts note that in the short term, the market may respond to new geopolitical changes. However, in conditions of reduced tension, an increase in supply could lead to further price declines, which will positively affect the global economy.
| Date | Brand | Price ($/barrel) | Change (%) |
|---|---|---|---|
| June 24 | Brent | 73.52 | -4.27 |
| June 24 | WTI | 69.86 | -4.58 |
