Oil News: WTI and Brent Rebound as Hormuz Traffic Defies Deal Talk
By:
Key Points:
- Iran denied direct talks as Hormuz shipping stayed thin, exposing Monday’s crude oil selloff as a diplomacy trade.
- Visible global inventories are falling at a 6.3 million barrel-per-day pace as Gulf and Red Sea flows stay disrupted.
- WTI and Brent are straddling their 50-day averages, setting up the next multi-dollar move once headlines pick a side.
The market sold a deal Monday that does not exist. Crude dropped more than 5% on the idea that talks with Iran would reopen the Strait of Hormuz, and then Iran said no direct negotiations with Washington were taking place and no meeting had been scheduled. Meanwhile a cargo vessel near Oman reported being hit by an unknown projectile. Sellers traded a diplomatic headline. The ships are still trading a conflict, and the physical market is tightening underneath the noise.