Oil prices fell across the board after a US-Iran peace deal freed substantial
crude supplies that demand cannot absorb. Less than three months ago global
physical crude benchmarks hit record highs, and until weeks ago industry
executives warned inventories were at extremely low levels amid the Iran crisis.
Analysts from Morgan Stanley to Goldman Sachs this week warned of a risk of
supply overhang next year; Energy Aspects head of oil research Kit Haines said
market sentiment is overwhelmingly bearish. Persian Gulf suppliers had begun
ramping shipments before the June MOU reopening the Strait of Hormuz, and in the
weeks after the deal more than 60 mln barrels of oil that had been trapped by
the war flowed into the market.
