Oil Prices Fall as Hormuz Mine Claims Face Skepticism
Oil prices are falling after President Trump claimed the Strait of Hormuz has been cleared of mines, though skepticism remains over the assertion, according to MUFG analyst Derek Halpenny. The market's direction hinges on actual traffic levels through the key waterway. Halpenny notes conflicting data on Hormuz flows, with US Energy Secretary Chris Wright claiming over 15 million barrels shipped in a single day last week, while tracking data suggests 2-6 million barrels daily. Untracked vessels without transponders could explain the discrepancy, with the true figure likely in between. Prices respond more to good news than bad, with a New York Times report on potential US diplomat returns to the Middle East easing concerns. However, large drawdowns in distillate and gasoline inventories, now at record seasonal lows, and the Iran-Oman charging deal have partially reversed declines.