Svmuu News: Citigroup stated that as disruptions in the Strait of Hormuz gradually ease, Brent crude prices could fall to $60 per barrel by the end of the year, further fueling pessimism about the global crude oil market. Citi analyst Francesco Martoccia noted in a report: “As the Strait of Hormuz crisis subsides, fundamentals are rapidly returning to normal. Shipping traffic is returning to normal, the spot crude oil market has weakened significantly, and inventory drawdowns are far below expectations.”
Analysts noted that the initial phase “is expected to be relatively volatile as shipping routes need to return to normal, the insurance market needs to adjust, and remaining logistical bottlenecks need to be gradually resolved.” They also pointed out that “the restoration of orderly shipping patterns and the increase in traffic volume indicate that commercial operators increasingly view the risk environment as manageable rather than unbearable.” (Jin Shi)