Crude Steady Near $68 as Hormuz Traffic Normalizes
Oil prices hold around $68/barrel as tanker flows through the Strait of Hormuz recover and US-Iran talks continue. Saudi exports return to ~90% of pre-war levels, while Brent's prompt spread briefly flipped into contango, signaling oversupply concerns.
Crude oil prices remained steady near $68/barrel on Monday as tanker traffic through the Strait of Hormuz continued to normalize following earlier disruptions. Saudi crude exports have recovered to about 90% of pre-war levels, adding to global supply.
The prompt Brent spread briefly flipped into contango, a bearish structure that signals growing oversupply concerns. Citigroup noted that oil market fundamentals are reasserting themselves as Hormuz disruptions fade and shipping flows normalize.
On the geopolitical front, President Trump said US-Iran negotiations are continuing and that Iran has "agreed to just about everything we need." However, disputes over Hormuz transit fees, Iran's nuclear program, and regional security remain key risks to a lasting peace agreement.
Source: First Squawk