Crude oil futures remained largely unchanged on Thursday as the market assessed the balance between geopolitical risks and supply recovery, despite recent signs of increased traffic through the Strait of Hormuz.
Increased Strait Traffic Latest shipping tracking data indicates a rise in the number of oil tankers passing through the Strait of Hormuz recently. A Panamanian-flagged crude oil tanker operated by Japanese refiner Ineos successfully navigated the strait on Thursday, carrying 1.2 million barrels of Kuwaiti crude and 700,000 barrels of UAE Das Blend crude, with an expected arrival in Japan in early June. This marks the second Japanese-affiliated vessel to cross the strait successfully following another Japanese tanker in late April.
In the preceding weeks, traffic through the strait had plummeted by 96% due to escalating regional conflicts. Iran implemented differential controls, prohibiting passage for vessels from the United States and Israel, while neutral nations were required to pay high transit fees.
Calm Market Response News of the increased traffic has led to a stabilization in crude oil market sentiment. Traders believe that although geopolitical risks have not completely subsided, the resumption of passage for some tankers suggests potential signs of easing tensions.
Outlook Analysts caution that a significant number of vessels remain stranded in the Persian Gulf region, and full normalization of traffic through the strait will still require time. The market will continue to monitor developments in this critical energy corridor.
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