FX.co ★ Urals Oil Falls to Over 3-Month Low

Russian Urals crude has fallen below $65 per barrel, its lowest level in more than three months, mirroring declines in international benchmarks as markets factor in the prospect of a US-Iran agreement that could reopen the Strait of Hormuz and release additional supply. Brent and WTI prices also retreated as traders positioned for the return of Iranian exports and a consequent easing of pressure on global inventories. The potential interim deal, which is expected to permit Tehran to resume oil sales, has already triggered tanker repositioning in anticipation of a gradual reopening of the strategic waterway. Analysts, however, foresee a slow recovery in flows due to ongoing security risks and operational constraints. Simultaneously, Russia is exporting near-record volumes of crude, as Ukrainian attacks on refineries divert more barrels into overseas markets. Russian seaborne shipments averaged 3.83 million barrels per day in the four weeks to June 14, marking the highest rate so far this year.