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Robin Brooks highlights that oil tanker traffic through the Strait of Hormuz has almost fully normalized.
According to Brooks, this normalization means oil markets are returning to a focus on broader macroeconomic factors. He points out that the recent decline in oil prices is driven by perceptions of a shift to a more hawkish Federal Reserve policy stance and weak payroll data.
Earlier, Brooks said Brent crude prices were likely to stay in the $80-90 range due to ongoing war-related risks and a significant risk premium, as detailed here. He also noted that a recent oil price panic was not supported by new information following the Strait closure, according to a separate analysis. These previous comments come amid changing market focuses as conditions in the Strait of Hormuz stabilize.