Oil prices continue to fall — Reuters
Global oil prices continue to trend downward, as expectations of a potential deal between the U.S. and Iran currently outweigh investors' concerns about the stability of supplies.
This is reported by Reuters.
Despite the risks of disruptions in key energy markets, the market is reacting to a potential de-escalation between Washington and Tehran.
Brent crude lost 44 cents, or about 0.5%, dropping to $94.49 per barrel.
This indicates traders’ cautious pessimism regarding the sustainability of extremely high price levels in the short term.
A similar situation is observed with U.S. West Texas Intermediate (WTI) crude oil. Its futures fell by 70 cents, or 0.8%, settling at $90.59 per barrel during the latest trading session.
Experts note that the market is awaiting concrete results from the negotiation process.
However, a significant portion of investors remain skeptical due to the history of previous failed attempts to reach agreements.
“Although there is hope for de-escalation between the U.S. and Iran, many investors remain skeptical, given that negotiations have repeatedly broken down even after seemingly making progress,” emphasized Toshitaka Tazawa, an analyst at Fujitomi Securities.
According to his forecasts, the price of WTI will remain in the range of $80 to $100 until a final peace agreement is reached and safe navigation through strategic straits is restored.
Oil prices have plummeted due to the possible resumption of Iran’s negotiations with the U.S. and Israel
Global oil prices are likely to peak within the next few weeks. This could happen after shipping resumes through the Strait of Hormuz.
In March, global oil refining volumes fell by 5 million barrels per day to 77.1 million bpd.
OPEC oil exports plummeted to a record low in March, according to Reuters.
As a reminder, oil prices have remained above $100 following the resumption of Iraqi supplies.
