{"id":745096,"date":"2026-06-18T14:10:08","date_gmt":"2026-06-18T14:10:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/745096\/"},"modified":"2026-06-18T14:10:08","modified_gmt":"2026-06-18T14:10:08","slug":"argus-u-s-iran-deal-wont-lead-to-one-way-traffic-to-plunging-oil-prices","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/745096\/","title":{"rendered":"Argus: U.S-Iran Deal Won\u2019t Lead to One-Way Traffic to Plunging Oil Prices"},"content":{"rendered":"

The uncertain pace of supply recovery in the Middle East and the continued rapid drawdowns of global inventories make the case that oil price volatility would drag on during the 60-day U.S.-Iran negotiation window, David Fyfe, Chief Economist at Argus Media, told CNBC<\/a> on Thursday.<\/p>\n

As the U.S. and Iran formally signed an agreement to reopen the Strait of Hormuz, oil prices continued their slide<\/a> this week and Brent Crude was as trading at around $77 per barrel in Asian trade on Thursday, as the market hopes for a quick recovery of the lost oil supply.<\/p>\n

Brent Crude<\/a> prices fell to below $80 per barrel for the first time since March, but some analysts think oil has become oversold, especially amid lingering uncertainties about pretty much everything surrounding the return of Middle Eastern supply.<\/p>\n

The memorandum of understanding to launch 60-day negotiations, extendable with mutual consent, means nothing has been resolved between the U.S. and Iran.<\/p>\n

Set OilPrice.com as a preferred source in Google here<\/a>.<\/p>\n

It\u2019s not clear how long the expected imminent reopening of the Strait of Hormuz will take\u2014Iran has to clear mines from the chokepoint, while Middle Eastern producers cannot return the 12 million barrel per day of production they had shut in \u201cat the flick of a switch,\u201d Argus Media\u2019s Fyfe told CNBC.<\/p>\n

\u201cAn awful lot of questions about just how quickly supply can be returned to the market\u201d remain, the economist said.<\/p>\n

Moreover, global oil stocks are very low and the market is currently in a deficit.<\/p>\n

\u201cIt wouldn\u2019t take much for prices to spike again,\u201d Fyfe said, commenting on the uncertainties about how quick supply could return.<\/p>\n

Global oil stocks are drawing and will continue to draw at a pace of about 2.5 million bpd in the third quarter even with a gradual return of supply, adding to price volatility, according to Fyfe.<\/p>\n

\u201cDon\u2019t expect this to be a one-way traffic in terms of crude prices going further down,\u201d the economist told CNBC.<\/p>\n

By Tsvetana Paraskova for Oilprice.com<\/a>\u00a0 <\/p>\n

More Top Reads From Oilprice.com<\/p>\n","protected":false},"excerpt":{"rendered":"The uncertain pace of supply recovery in the Middle East and the continued rapid drawdowns of global inventories…\n","protected":false},"author":2,"featured_media":745097,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[266996,32475,45,49,48,266997,267000,266999,267001,9891,266998,172000,266995],"class_list":["post-745096","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-argus-media","tag-brent-crude","tag-business","tag-ca","tag-canada","tag-david-fyfe","tag-global-oil-inventories","tag-middle-east-oil-production","tag-oil-price-volatility","tag-oil-prices","tag-oil-supply-recovery","tag-strait-of-hormuz","tag-us-iran-deal"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/745096","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=745096"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/745096\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/745097"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=745096"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=745096"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=745096"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}