Woofun AI reports that the Brent crude near-month spread has shifted to contango for the first time since February, indicating that near-month contract prices are lower than those of the subsequent month. This structural change typically reflects expectations of a supply surplus.

This development follows the reopening of the Strait of Hormuz due to a US-Iran agreement, which has increased Middle Eastern oil supply.

Concurrently, Brent crude prices fell below $75 per barrel for the first time since the onset of the Iran conflict, while physical crude premiums declined and similar trends emerged in the Dubai market.