Oil News: Crude Oil Tumbles as Traders Price In Hormuz Reopening
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Key Points:
- Crude oil futures fell for a seventh straight session as Iran ceasefire hopes eased supply concerns.
- A potential Strait of Hormuz reopening could restore flows for nearly 20% of global oil supply.
- OPEC spare production capacity adds to fears that global crude oil supplies may soon increase.
July WTI crude oil futures fell more than 2% Friday and are testing $87.91 support late in the session. Spot Brent crude oil dropped more than 2% to trade near $91.61. Seven straight days of selling since the $105.21 high on May 18. President Donald Trump is in the White House Situation Room right now meeting with advisors on the 60-day ceasefire framework with Iran. The Strait of Hormuz could reopen within weeks. The charts and the fundamentals are pointing the same direction. Here is the setup.