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▲ Saudi Arabia, International Oil Prices, Crude Oil, Gold, Bitcoin (BTC) / AI Generated Image
International oil prices fell below $68 for the first time in 125 days due to the recovery of Saudi Arabian crude oil exports. Simultaneously, Bitcoin (BTC) and gold both saw an upward trend. While the crude oil war premium is receding, risk asset preference and inflation hedge demand are simultaneously reviving, leading to diverging market fund flows.
According to the cryptocurrency specialized media outlet BeInCrypto on July 2 (local time), West Texas Intermediate (WTI) fell below $68 for the first time in 125 days. During the same period, Bitcoin rose by over 5% to exceed $61,500, and gold continued its upward trend above $4,000. The media analyzed that a significant portion of the war premium reflected in oil prices disappeared as Saudi oil exports recovered after the reopening of the Strait of Hormuz.
Four very large crude carriers (VLCCs) operated by Saudi state shipping company Bahri departed the Gulf region carrying approximately 8 million barrels of crude oil. Saudi oil exports had decreased to about 4 million barrels per day during the conflict, but after falling significantly from over 7 million barrels per day in February, they are now approaching pre-war levels of 6.3 million barrels per day. Saudi Aramco has also resumed shipments from Ras Tanura, which had been suspended for nearly four months.
Shipping analytics firm Kpler estimated that Strait traffic has recovered to approximately 40 vessels per day. According to the U.S. Energy Information Administration (EIA), the Strait of Hormuz is a critical shipping lane, handling about 20% of the world's seaborne oil trade. However, the 60-day truce roadmap is still largely temporary, and the Gulf region's marine insurance industry remains cautious.
Bitcoin rose over 5% in the 24 hours leading up to the time of writing, trading around $61,649. Falling oil prices acted as a factor in reviving risk asset preference by reducing energy cost burdens and inflation expectations. The media explained that there were signs of easing Bitcoin selling pressure even before the truce, and the easing of geopolitical tensions had a similar effect on the stock market.
Gold also remained strong. Gold prices moved around $4,119, with attempts to rise towards $4,140 during the day. However, it is still far from the high of over $5,500 recorded in January. Gold has risen over 22% in the past year, and investors continue to hold gold as a hedge against inflation and geopolitical risks. While oil prices fell reflecting supply recovery, Bitcoin and gold moved in opposite directions, backed by risk asset recovery and defensive demand, respectively.
[Article Key Summary]
-WTI fell below $68 for the first time in 125 days due to the recovery of Saudi crude oil exports and the reopening of the Strait of Hormuz.
-Bitcoin rose over 5% to exceed $61,500, and falling oil prices contributed to the recovery of risk asset preference.
-Gold maintained above $4,000, continuing its demand as a hedge against inflation and geopolitical risks.
*Disclaimer: This article is for investment reference only, and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*
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