Organization: The oil price is unlikely to see a significant decrease until the Strait of Hormuz is fully reopened.

The space for oil price to fall is limited before the Strait of Hormuz is completely reopened and tanker traffic resumes. Michelle Brouhard, Policy and Geopolitical Risk Manager at Kpler, said, "If the strait is not reopened, prices cannot fall." "You need ships to actually return to the strait, load cargo, and transport it out... You need the round-trip route of the strait to be reopened." She said that the agreement to reopen the waterway could bring Brent crude prices down to the range of $85 to $90 per barrel, but prices are unlikely to fall below $80 per barrel. Inventory losses and a production shortfall of about 1 billion barrels in the Middle East region continue to support prices, and once the strait is reopened, inventories will still need to be replenished. Brouhard said, "There will still be some geopolitical risks that need to be reflected in the prices."