Svmuu News: With the reopening of the Strait of Hormuz following the U.S.-Iran agreement, oil supplies in the Middle East have increased, causing the Brent crude near-month spread to shift to a futures premium for the first time since February—meaning the price of the near-month contract is lower than that of the next-month contract.
This structure typically signals expectations of a supply glut. It is the latest in a series of signals indicating that the oil market is softening as the physical crude oil premium declines. Earlier today, Brent crude prices fell below $75 per barrel for the first time since the outbreak of the Iran conflict. Prior to Brent crude shifting to a futures premium, the Dubai market in the Middle East had also exhibited a similar trend in recent days. (Jin Shi)