Brent Crude Pulls Back Toward $90 on Ceasefire Extension
Crude prices eased as traders priced in a likely extension of the US-Iran truce and steady supply from the Strait of Hormuz.
Brent crude futures fell for a third straight session, settling near $90.40 a barrel, as traders priced in a likely extension of the US-Iran ceasefire. The truce has now held for eight weeks, with tanker traffic through the Strait of Hormuz running at pre-conflict levels.
Demand side is no longer the worry
China's May refinery throughput came in at the high end of estimates, and US gasoline demand ahead of the summer driving season is tracking above last year. The demand picture is solid; the issue is supply discipline.
OPEC+ in focus
OPEC+ meets next week. Market consensus is for the group to roll over current cuts, but there is a real chance of a small voluntary unwind from Saudi Arabia and the UAE to defend market share. Any signal of additional barrels would push Brent toward $86.
Trader takeaways
- Sell rallies into $93–$94.
- Buy dips into $86–$87 with a stop below $84.
- Watch the WTI-Brent spread — narrowing would suggest US production growth is finally slowing.