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Oil Rises Amid Strait of Hormuz Uncertainty
17 Jun
Summary
- Oil futures saw a technical recovery after recent declines.
- Strait of Hormuz traffic normalization may take months.
- Full oil output restoration is not expected before late September.
Oil futures are showing a technical recovery in early Asian trade. This rebound follows a four-day period of decline for futures contracts. Analysts at HSBC Global Investment Research have offered insights into the potential impact of a U.S.-Iran memorandum of understanding. They stress the importance of observing actual adherence to the agreement.
The research indicates that even with restored navigation, normalizing commercial traffic through the Strait of Hormuz will require substantial time. An optimistic projection suggests that meaningful restoration of traffic might not occur before late July. Furthermore, a near-complete recovery of oil output is not anticipated before the end of September.
