Oil Sticks Near a Four-Month Low as Supply Continues to Return to Normal

Oil prices eased early Monday, staying near pre-war levels as tankers continue to move through the Strait of Hormuz and gulf producers look to hike output. West Texas Intermediate crude oil was last seen down 0.4% to $68.44 per barrel, the lowest since Feb. 27, while September Brent oil was down 0.4% to $71.87. The drop comes as more tankers that have been trapped in the Persian Gulf since the Feb. 28 start to the war on Iran move through the Strait, with hormuzstraitmonitor.com reporting 25 ships have transited the Strait in the past day, leaving 450 ships in the queue to leave the region. The reopening of the Strait following the June 17 60-day ceasefire agreement between the U.S. and Iran is easing the largest-ever oil supply shock, which shut in much of the supply from Persian Gulf nations that accounts for about 20% of daily global oil demand. However, supply from the region is returning, with Reuters reporting the United Arab Emirates is producing a near-record 3.8-million barrels per day while OPEC+ on the weekend boosted quotas by 188,000 barrels per day beginning in August. "Brent trades steady around USD 72, weighed down by continued flows through the Strait of.