Global oil prices continued to fall on Wednesday, reaching their lowest levels in four months as concerns over supply disruptions eased.
Brent crude dropped by 78 cents, or about 1%, to $76.30 per barrel. Meanwhile, U.S. West Texas Intermediate (WTI) crude fell 1.1% to $72.43 per barrel.
Analysts say the decline is mainly due to growing optimism that oil shipments through the Strait of Hormuz are returning to normal. The strategic waterway is one of the world’s most important routes for global energy supplies.
Recent days have seen an increase in the number of oil tankers and commercial ships passing through the strait, helping to calm fears about potential supply disruptions. Although traffic has not yet returned to the levels seen before recent military tensions, the improvement has boosted confidence in the market.
As a result, investors are becoming less worried about interruptions to global oil flows, putting downward pressure on prices and helping ease concerns about energy supplies.
