Oil price hits lowest since early March despite doubts over how quickly strait of Hormuz will reopen – business live
Summary
Oil prices have dropped to their lowest level since early March despite uncertainty about when the Strait of Hormuz will reopen. Traders expect oil supplies to rise if a US-Iran deal leads to reopening, but experts say it will take time for shipping to return to normal.Key Facts
- Brent crude oil price fell by about 2.5% today to just over $81 per barrel.
- The price is the lowest since March 4, but still above the pre-war level of $72.48 per barrel.
- President Donald Trump said the Strait of Hormuz will reopen once the US and Iran sign a memorandum of understanding.
- Oil shipping companies want to see a clear end to hostilities and safety measures before resuming transit through the strait.
- Some oil production sites need repair, and some tankers are not in position, causing delays in restoring normal traffic.
- The head of the International Energy Agency said fully reopening the strait is key to lowering oil and gas prices.
- The reopening could increase oil supply from the Middle East and stabilize the market.
- Experts warn it may take weeks before shipping and oil prices fully recover.
Read the Full Article
This is a fact-based summary from The Actual News. Click below to read the complete story directly from the original source.