Crude Oil Prices Fall as Tankers Exit Strait of Hormuz After U.S.-Iran Ceasefire

Crude oil prices fell after the United States and Iran agreed to a 60-day ceasefire. Tankers are departing the Persian Gulf in greater numbers, and some cargoes are being offered at discounts. Bloomberg reported earlier this week that Angolan crude sold at a $10 discount to dated Brent, the first such discount in a decade.

Chinese refiners were also offering crude cargoes for sale, according to unnamed traders cited by the publication.

Most of the departing tankers are vessels that had been stranded during earlier tensions rather than new supply entering the market. Iran struck a commercial ship near Oman during the same period the ceasefire has been in effect. com reported that the U.S. strategic petroleum reserve is at its lowest level in four decades.

The publication also noted that China may resume purchases once it completes current sales of offloaded cargoes.