Oil prices fell amid negotiations between the U.S. and Iran
Global oil prices fell on June 2 following a significant rise the previous day. Investors are closely monitoring the progress of negotiations between the U.S. and Iran, which could affect the energy market and the security of supplies through the Strait of Hormuz.
According to trading data, Brent crude futures fell by 0.79% to $94.23 per barrel, while U.S. WTI crude lost 0.92% and dropped to $91.31 per barrel.
The day before, both oil benchmarks had shown significant gains—more than 5% in a single trading session. This came after prices lost more than 16% of their value in May amid hopes for a possible diplomatic resolution to the situation in the Middle East.
However, uncertainty surrounding the negotiation process between Washington and Tehran continues to affect market sentiment.
U.S. President Donald Trump stated that negotiations with Iran are ongoing, although earlier reports had suggested that Tehran had suspended them.
Senior market analyst Priyanka Sachdeva noted:
“Although markets had hoped to overcome the uncertainty amid prospects for a potential deal, as of this morning, it appears nothing has changed for oil.”
At the same time, Trump expressed hope that agreements would be reached on extending the ceasefire and restoring safe shipping through the Strait of Hormuz in the near future.
Experts emphasize that the market continues to closely monitor any statements from the parties regarding the situation in the region.
Tim Waterer, chief analyst at KCM Trade, emphasized:
“Currently, the market’s attention is focused on whether there are any concrete successes or failures in the negotiations between the U.S. and Iran, on the tone and content of statements from both sides—particularly Iran’s threats regarding the Strait of Hormuz—as well as on the actual movement of tankers through this waterway.”
A significant portion of global oil exports passes through the Strait of Hormuz, so any risks to shipping immediately affect prices.
Data on the growth of U.S. exports is providing additional support to the market.
In May, U.S. crude oil exports reached a record 5.6 million barrels per day. Demand for U.S. oil has increased from refineries in Asia and Europe amid the tense situation in the Middle East.
In addition, analysts expect U.S. crude oil inventories to have declined by approximately 3.6 million barrels over the last reporting week. A decrease in gasoline and distillate inventories is also forecast, which could support prices in the near term.
Thus, the oil market remains extremely sensitive to news from the Middle East, and further price dynamics will largely depend on the outcome of negotiations between the U.S. and Iran.
This is reported by Reuters.
Prior to this, oil prices rose amid expectations of a meeting between Donald Trump and Xi Jinping. Traders are focusing on possible signals regarding a resolution to the conflict with Iran, which has impacted global oil supplies.
As of Tuesday morning, May 12, Brent crude was trading at $106.4 per barrel, and WTI at $100.6 per barrel.
