Oil drifts lower as Strait of Hormuz reopens, focus shifts to demand outlook

Key Points:

• Oil prices experienced choppy trading on Friday as markets evaluated the impact of the interim U.S.-Iran deal and signs of recovering shipping activity through the Strait of Hormuz.
• Brent crude futures for August fell 0.45% to $79.49 per barrel, while U.S. West Texas Intermediate futures for July declined 0.31% to $76.36 per barrel.
• Vice President JD Vance reported that tankers carrying over 12 million barrels crossed the Strait of Hormuz overnight, with Iran refraining from attacking ships for the second consecutive night, indicating compliance with the deal.
• OPEC Secretary General Haitham Al Ghais stated that the organization does not foresee oil demand peaking soon and dismissed International Energy Agency forecasts of a supply glut.
• Market analyst Tiago Lacerda noted that oil prices are expected to trade between $75 and $82 per barrel in the near term, but cautioned that shipping lines have yet to fully resume transits and insurance rates remain high, reflecting market caution.