Oil Glut Calls May Be Getting Ahead of Reality

Crude oil prices are crashing on reports that flows out of the Strait of Hormuz are recovering, and analysts are back to predicting oversupply, even though Iran just said it will not be meeting with the U.S. envoys to negotiate peace, and that comes after strikes on a couple of ships in Hormuz.

“The Strait is reopening faster than expected, yet the ‘twin solvers’ of high US exports and low Chinese imports remain in place,” Morgan Stanley commodity analysts wrote this week in a note, as quoted by Bloomberg.

“As attention…