Oil markets react to Strait of Hormuz reopening and record Russian export revenues

Oil markets are experiencing significant shifts as the Strait of Hormuz becomes more navigable after seven months of restricted passage. Major US financial institutions, including JPMorgan and Goldman Sachs, report that total supplies are approaching pre-war levels. However, Brent crude prices remain elevated, trading around $103 per barrel, as market uncertainty persists regarding potential escalations in US-Iran negotiations.

Global oil supplies face additional pressure due to depleted strategic reserves. The United States' strategic petroleum reserve has fallen to its lowest level since 1982, currently holding fewer than 284 million barrels. Meanwhile, the International Energy Agency has noted acute shortages in refined products, particularly diesel.

In a related development, Russia has achieved its highest estimated weekly maritime oil export revenues since the start of the conflict in Ukraine. Driven by high Brent prices and increased demand from Asian buyers like China, Russian oil companies exported approximately 3.99 million barrels per day. Bloomberg estimates the value of Russian oil transported from its ports reached approximately $2.75 billion last week, an increase of $180 million from the previous week.