Brent crude fell below $90 for the first time since August as peace hopes in Iran and Ukraine accelerated a market selloff that has erased nearly $30 per barrel since the US midterm elections.
Brent briefly fell below $90 for the first time since August as diplomatic breakthrough hopes in Iran and Ukraine accelerated the selloff, with crude down almost $30 per barrel since the US midterm elections. Peace expectations are driving the drop, though persistently exorbitant Gulf freight rates (VLCC fixtures around $72-74 million, $36-37 per barrel) and 16 tanker strikes in Hormuz this month show the market is not uniformly convinced the war is over.
WTI futures traded at 86.65, down 0.23%, as the crude selloff dragged oil to its lowest level since August on Iran peace hopes after nearly $30 per barrel of losses since the US midterm elections. The same freight-rate caveat applies: Gulf-to-China VLCC fixtures remain around $72-74 million, and 16 tanker strikes in Hormuz this month keep some geopolitical risk premium in the market.
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Oil prices have extended their decline, with Brent crude briefly falling below $90 for the first time since August. The selloff, which has seen crude drop by nearly $30 per barrel since the US midterm elections, is driven by optimism regarding potential diplomatic breakthroughs in Iran and Ukraine.
Hopes of diplomatic breakthroughs in Iran and Ukraine have accelerated the selloff, with Brent briefly dropping below $90 for the first time since August and crude down nearly $30 per barrel since the US midterm elections.
The article notes stubbornly high Gulf freight rates — VLCC voyages to China around $36-37 per barrel — and at least 16 tanker strikes in Hormuz this month, suggesting not every market segment believes the US-Iran war is effectively over.
Crude oil prices have plunged by almost $30 per barrel since the US midterm elections, with WTI futures around 86.65 and Brent below $90 for the first time since August.
Freight rates from the Gulf remain exorbitant — around $36-37 per barrel for a VLCC to China — and Iranian attacks have hit at least 16 tankers in the Strait of Hormuz this month, which could keep a risk premium in prices.