Crude oil hovered near a three-month low below $77 per barrel on Wednesday, extending a four-session losing streak. Prices came under pressure amid expectations of higher global supply following a widely anticipated peace agreement between the US and Iran.
The two countries are scheduled to sign an interim deal in Switzerland on Friday, which would grant Tehran broad economic incentives, including the immediate resumption of its oil exports. Tankers from other nations are likewise expected to resume transits through the Strait of Hormuz once the accord takes effect, although shipping companies remain wary about its long-term durability.
Additional barrels from the region are projected to swell refinery inventories worldwide, adding to the impact of higher OPEC+ export quotas and increased output from the UAE, which left the cartel during the conflict. At the same time, industry data showed that US crude stockpiles dropped by 8.3 million barrels last week.
