Oil markets have quickly shifted from fears of shortages to signs of oversupply after crude shipments through the Strait of Hormuz increased following the US-Iran agreement to reopen the waterway. Weak demand from China, strategic stock releases, and increased tanker flows had already created excess supply. Now, buyers in Asia and Europe are being offered more cargoes than they need, putting pressure on prices. Angolan crude has been hit especially hard, trading at its biggest discount in years, while some Chinese refiners have even started selling oil cargoes instead of buying them. The surge in supply has reversed the market trend seen during the Iran conflict, when prices briefly soared above $140 per barrel. Analysts say the reopening of Hormuz has eased supply concerns, though low global inventories could still leave markets vulnerable to future disruptions.

Disclaimer: This image is taken from Bloomberg.