Oil Extends Plunge Toward Worst Week as Inventory Warnings Mount

Oil prices extended their sharp decline through June 18, with Brent near $81 and WTI at $78.83, tracking toward the worst weekly performance in months. Markets rapidly unwound the geopolitical risk premium after a preliminary U.S.-Iran framework deal signaled potential reopening of the Strait of Hormuz. Earlier articles detailed how the four-month disruption had already drawn down global inventories by roughly 500 million barrels to 7.5 billion, at a pace of 5.8 million barrels per day, while more than 10 million barrels per day of Middle East output remains shut in. Executives at Chevron and ExxonMobil warned that even if flows resume, logistics, insurance, and infrastructure constraints mean replenishment could take months, leaving the market vulnerable to renewed tightness.