Oil prices continued to decline on Thursday, June 25, dropping to their lowest levels since late February amid expectations of recovering shipments through the Strait of Hormuz, Reuters reports.
August Brent crude futures fell by $1.22, or 1.65%, to $72.52 per barrel. US West Texas Intermediate (WTI) crude declined by $1.02, or 1.45%, to $69.32 per barrel.
For both benchmark grades, the prices marked their lowest levels since February 27. Market sentiment has been weighed down by easing concerns over potential disruptions to Middle Eastern oil supplies, while worries about weakening global demand continue to persist.
An additional signal for the market came from the Brent futures curve, where August contracts are trading below September contracts. This market structure points to an oversupply of crude in the short term.
Oil prices had already fallen sharply in the previous session, with Brent losing more than $3 per barrel and WTI dropping by nearly $3 per barrel.
US Energy Secretary Chris Wright said that oil flows through the Strait of Hormuz have already returned close to pre-war levels. According to Wright, at least 20 million barrels of oil passed through the strait over the past 24 hours.
He added, however, that a full restoration of maritime traffic will take several more weeks, as the waterway still requires mine-clearing operations.
By Jeyhun Aghazada
