WTI Oil 240626 Daily Chart
WTI oil tests new lows as traders stay focused on progress in negotiations between U.S. and Iran.
According to recent reports, a growing number of tankers is openly passing through the Strait of Hormuz. Previously, tankers going through the Strait would turn off their transponders to boost safety.
International Energy Agency estimated that United Arab Emirates has already boosted its oil exports to 85% of pre-war levels, which indicated that supply was returning at a robust pace.
It should be noted that UAE has officially left OPEC and OPEC+ on May 1, 2026, to boost production. At that time, UAE’s decision did not have an impact on oil markets as the Strait of Hormuz remained closed. In the upcoming months, this decision could be felt by the market as UAE would rush to increase production.
While negotiations between U.S. and Iran have reportedly reached progress, some key issues are unresolved. Israel’s operation against Hezbollah in Iran and Iran’s desire to charge tolls for passage through the Strait of Hormuz are among the key points which would be discussed.