Global oil oversupply looming in Oil & Companies News 09/07/2026 Oil prices have recently fallen sharply, with the front-month ICE Brent and NYMEX WTI contracts trading at $71/bl and $69/bl as of 3rd July. The weakness in oil prices began as soon as US announced that a peace deal was imminent, prompting a sell-off in oil futures. Naturally, physical traders and speculators unwound their long positions as expectations of a resumption of oil flows through the Strait of Hormuz grew. Seaborne crude/condensate liftings inside the Strait of Hormuz increased for the 2nd consecutive week (for the week ending 5th July), though growth in crude liftings began as early as the end of May. The crude supply deficit caused by the closure of the Strait of Hormuz hovered between –12 mbd and –14 mbd across the March–May period when compared to the 2025 average baseline. Iran was exporting at normal levels in March until the US blockade was imposed on 13th April, restricting both inbound and outbound vessels involved in Iranian oil trade and adding to the crude supply deficit. The signing of the MOU has prompted other Middle Eastern countries to ramp up crude liftings, with significant increases seen in the UAE and Saudi Arabia over the past two weeks, aided by the involvement of shuttle tankers, state-owned vessels and major trading firms. Among the mainstream crude producers, UAE was the first country to ramp up its crude liftings back to pre-war levels since early June as the country utilised its ADCOP pipeline to transport crude from its Habshan oil fields in Abu Dhabi to Fujairah and directed most of the crude supplies that had initially been fed to its refineries towards the market. Its success was also attributed to the use of ship-to-ship (STS) transfers to move oil from within the Strait of Hormuz to vessels outside it, at STS zones such as Sohar and Fujairah, allowing buyers to secure much-needed supplies in a safer area. Non-OPEC exports hit record highs Facilitated by t