Crude Oil is trading 1.6% down at $68.80 as accelerating tanker traffic through the Strait of Hormuz eases supply fears and compresses the geopolitical risk premium.
- Increased tanker activity suggests a reduction in conflict-related disruptions, leading traders to scale back on risk premiums.
- Prices continue to consolidate following a sharp quarterly decline, driven by expectations of higher Persian Gulf flows as regional peace efforts progress.