Brent curve points to oil oversupply after Hormuz reopening

Oil markets are starting to price a near-term supply glut as tankers resume leaving the Strait of Hormuz following its reopening. On June 24, Brent futures for September traded 12 cents above the August contract, the first time since the conflict began in late February that later-dated oil was priced higher than prompt supplies. Traders appear to expect ample crude in the immediate term, even though supplies could tighten again in coming months. U.S. Energy Secretary Chris Wright said about 20 million barrels of oil passed through the strait in the previous 24 hours, describing the shipments as a return to normal flows after a U.S.-Iran interim agreement. Shipping data showed three tankers carrying roughly 5 million barrels departed on June 24 after being stranded during the conflict. Analysts cited increased Middle East supply as driving discounts on physical cargoes globally and heavy selling, particularly for August.