Oil Prices Fall to Four-Month Low in Global Market

Darwin, 25 June : Crude oil prices in the international market fell on Wednesday (June 24), reaching their lowest level in nearly four months.

Brent crude traded at around $76.30 per barrel in early futures trading, marking its weakest level in about four months. At the same time, West Texas Intermediate (WTI) crude dropped 78 cents, or 1.1%, to $72.43 per barrel.

Both benchmarks also fell nearly 1% on Tuesday, closing at their lowest levels since early March.

Easing Geopolitical Risks Pressures Prices

According to market analysts, improved signals from the Persian Gulf region have raised expectations that oil shipments through the Strait of Hormuz may return to more normal levels.

Although traffic through the key shipping route has increased recently, it remains below pre-conflict levels.

ING commodities strategists said that expectations of higher oil flow through the Strait of Hormuz are having a downward impact on prices, even though shipping activity has not yet fully normalized.

Iran–U.S. Tensions Ease, Supply Outlook Improves

Easing tensions between the United States and Iran have also contributed to the decline in oil prices.

Following preliminary peace discussions, the U.S. reportedly eased sanctions on Iranian oil exports for 60 days, a move expected to increase global supply.

Mitsubishi UFJ Research & Consulting senior economist Tomomichi Akuta said that hopes of reduced U.S.–Iran tensions and a gradual recovery in oil flows through the Strait of Hormuz have pushed crude prices lower.