NEW YORK, June 24 (Xinhua) -- Brent crude futures fell below 75 U.S. dollars per barrel on Wednesday for the first time since the United States struck Iran in late February, as concerns over supply disruptions eased.
In particular, Brent crude for August delivery hit a low of 73.22 U.S. dollars per barrel at one point in the morning session on Wednesday.
West Texas Intermediate (WTI) crude for August delivery gave away support around psychologically important level of 70 U.S. dollars per barrel and fell to a low of 69.63 U.S. dollars per barrel in the morning.
Market sentiment was boosted by expectations of smoother oil flows through the Strait of Hormuz following a Memorandum of Understanding announced last week to end the conflict.
Oman has announced the opening of temporary shipping routes through the Strait of Hormuz, the country's Maritime Security Center said on Wednesday in a social media post.
In coordination with the International Maritime Organization (IMO), the toll-free corridor will be open to all vessels.
The IMO has announced an evacuation plan for more than 11,000 seafarers still stranded in the Strait of Hormuz.
The significant strengthening of the U.S. dollar upon the conclusion of the latest U.S. monetary policy meeting on June 17 has also weighed on dollar-denominated oil prices.
Statistics show that the U.S. Dollar Index (DXY) reached 101.80 on Wednesday morning, up from a low of 99.46 on June 16.
Oil prices continue to move lower as flows from the Persian Gulf gradually recover, noted Warren Patterson and Ewa Manthey, analysts at ING.
"Clearly, price movements suggest the market expects a fairly rapid recovery in Persian Gulf oil supplies," they added.
Still, the analysts hold that the oil sell-off is overdone, with the market still tightening.
Both front-month Brent and WTI crude oil futures topped 110 U.S. dollars per barrel amid the conflict in the Middle East and the closure of the Strait of Hormuz earlier this year.
