Oil News: WTI and Brent Stall as Hormuz Talks Await a Temporary Deal
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Key Points:
- WTI and Brent stall at their 50-day MAs as temporary Hormuz deal talk keeps sellers defending the recovery.
- Hormuz traffic fell to 33 vessels this week, showing Gulf oil flows remain far below what futures priced.
- Iran’s demands for shipping control, transit fees and vessel bans turn a Hormuz route into a major risk.
Crude dropped nearly 10% from Monday to Thursday on a deal that does not exist and bounced early Friday when the market found out what Iran is actually offering. Tanker traffic through Hormuz fell to 33 ships this week, down from 50 last week. Only four passed through on Thursday. Both WTI and Brent are trying to get back on the bullish side of their respective 50-day moving averages and trader reaction to that indicator sets the tone for the day. The futures market priced a reopening. The ships priced a conflict that is still on.