The reversal follows last month’s bidding frenzy and comes despite the continuing closure of the Strait of Hormuz.
The pullback eases an immediate squeeze in the physical market, but traders warn the respite could be brief as temporary workarounds cannot cover disrupted supply indefinitely.
That leaves a paradoxical market backdrop: spot cargo prices are falling even as warnings persist that oil markets could still face a broader crisis within weeks.
Oil prices are dropping despite a historic supply crisis. Is the era of fossil fuel dominance unexpectedly ending?
With stopgap measures failing, how will the world replace the 20 million barrels of oil lost daily from the Hormuz closure?
Europe faces an imminent jet fuel crisis within weeks. Will this permanently reshape global travel and aviation industries?