Crude markets react to a 60-day US-Iran truce, pricing in supply gains as Angolan crude hits a $10 discount to Brent.
Oil prices fell sharply after the United States and Iran agreed to a 60-day ceasefire, with traders anticipating a surge in crude supply. Tanker traffic from the Persian Gulf has increased, reinforcing expectations of higher exports.
Angolan crude was sold at a $10 discount to dated Brent for the first time in a decade, signaling market oversupply concerns. Chinese refiners have also shown heightened interest in discounted cargoes, further pressuring prices.
Despite the ceasefire, tensions persist, including a recent Iranian strike on a commercial vessel in the Strait of Hormuz, underscoring lingering supply risks.