Oil prices fell amid expectations of a de-escalation in the Middle East
Oil prices fell on Friday following signs of a possible easing of tensions in the Middle East amid the announcement of a 10-day ceasefire between Lebanon and Israel.
This was reported by Reuters.
Brent crude futures fell by $1.34 (1.35%) to $98.05 per barrel. U.S. WTI contracts dropped by $1.65 (1.74%) to $93.40 per barrel.
In March, the market saw a record increase in oil prices—up to 50%—but subsequently, prices fell below the $100-per-barrel mark and remain volatile in the range of about $90.
As noted, Israel’s military campaign in Lebanon has complicated negotiations to resolve the conflict with Iran, which, according to U.S. President Donald Trump, may be nearing a conclusion.
Commenting on the situation, Trump said: “We’ll see what happens next. But I think we’re very close to reaching a deal with Iran.”
He also noted that Iran has allegedly agreed not to possess nuclear weapons for more than 20 years.
According to analysts, US and Iranian negotiators have now lowered their expectations and are considering a temporary memorandum instead of a full-fledged peace agreement to avoid further escalation.
Global oil prices continue to trend downward, as expectations of a potential deal between the U.S. and Iran currently outweigh investors’ concerns about supply stability.
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.
