Despite a fragile U.S.-Iran cease-fire and fears of an uneven recovery, millions of barrels of crude oil are already lined up over the short term.
Inflation has been the market's dominant concern.
Oil prices fall on hopes that more Iranian crude will hit the global market as supplies near critically low levels.
Author and former trader Dan Dicker says President Donald Trump's rhetoric can only take the market so far,
A sharp acceleration in electric vehicle sales could reduce global oil demand by as much as 320,000 barrels a day by the end of next year, according to Goldman Sachs, as energy prices retreat towards levels seen before the Iran war. The bank said global EV penetration reached 26.1% of total passenger car sales in May, up 3.4 percentage points since February and close to a record high.
Shipping stalled through the strategically vital Strait of Hormuz over the weekend, according to maritime intelligence company Windward. The data shows that a recovery in oil tanker traffic through the world's most important oil choke point just last week appears to have already hit a snag.
Qatar and Pakistan announced that the U.S. and Iran had agreed to a mechanism to ensure the termination of military operations in Lebanon.
Most share markets slipped in Asia on Monday as doubts about the Middle East peace process sent oil prices and bond yields up again, leading investors to price in more risk of higher U.S. interest rates.
A framework peace agreement between the Trump administration and Iran has shifted the outlook for energy prices and inflation heading into the new week, as discussed on Friday's edition of Maria Bartiromo's “Mornings with Maria” on Fox Business.
The sudden release of supply helped drive oil sharply lower from its spring highs and briefly pushed gasoline below $4 a gallon in parts of the US.
Oil shipments through the Strait of Hormuz picked up on Friday after the United States and Iran signed a ceasefire deal, with Gulf producers preparing to raise exports despite concerns over conditions set by Tehran for using the vital waterway.
Recovery hinges both on whether tankers can freely transit the strait, and if the region's oil producers can load enough crude once these vessels are ready to sail, according to Rystad Energy.