Oil prices are falling amid progress in negotiations between the U.S. and Iran
As of July 2, global oil prices had fallen by nearly 1% and continued to decline for the third consecutive day. The market reacted to Qatar’s statement regarding progress in indirect talks between the U.S. and Iran on the situation surrounding the Strait of Hormuz.
The discussions yielded “positive progress” on issues related to the memorandum that halted the war in June, a spokesperson for the Qatari Foreign Ministry wrote on X.
Brent futures lost 77 cents, or 1.1%, and were trading at $70.80 per barrel. U.S. West Texas Intermediate fell by 84 cents, or 1.2%, to $67.74 per barrel.
Both benchmarks also fell by more than 1% in the previous session, hitting four-month lows.
As the strait remains open and crude oil enters the market, expectations of a supply glut are growing, and competition for market share is putting pressure on prices, according to a note from Haitong Futures, Reuters reports.
As a reminder, the fuel shortage in Crimea has triggered a wave of mass layoffs and business closures.
Earlier, the Russian presidential administration sent special “recommendations” to state-run and pro-government media outlets regarding how exactly to report on the fuel shortage in the country.
The fuel crisis is also intensifying in Russia: gasoline is running out at gas stations and lines are growing.
Russia has allowed the use of lower-quality gasoline due to the fuel crisis.
