Global crude oil markets witnessed a dramatic reality check today (25) as prices slid to multi-month lows, completely erasing the inflated geopolitical anxiety of recent weeks.
Speculators who panicked over Middle East supply lines are rapidly dumping their contracts now that shipping through the Strait of Hormuz behaves perfectly normally.
In today's trading, the international benchmark Brent crude led the downward march, trading at USD 72.32 a barrel.
US West Texas Intermediate (WTI) slipped underneath the seventy-dollar mark to USD 69.20, while Abu Dhabi Murban crude plummeted to USD 66.50.
This swift unwinding of values highlights a bruising 3-day losing streak for energy bulls.
Just 24 hours ago, Brent commanded USD 74.52, while WTI fetched USD 70.36.
Go back two days to Tuesday, and the picture looked far more lucrative for producers.
At Tuesday's settlement, Brent stood at USD 77.08, WTI reached USD 73.21, and Murban crude held at USD 69.63.
Analysts note that the sudden re-entry of stranded barrels completely shattered the market's fragile premium.
