Brent Falls to $95 amidst Iran Nuclear Talk
Brent crude price declines to $95 per barrel early on Monday as the global market continues to face uncertainties, as major oil consumers are face with barrage of economic downsides.
The United States and Iran are still on the table discussing nuclear that would if passed, increase supply in the market. This time, China’s crude demand has reduced as Beijing suffers economic weakness.
India is stabilizing but demand is yet to reach pre-pandemic levels while there is recession fear in the United States. The Organisation of Petroleum Exporting Countries and its allies (OPEC+) have raised output for September, creating a strong market supply.
Last week’s volatile crude oil prices were a result of a growing list of downside risks, with weakening economic growth fears at the top of the list, OANDA analyst Craig Erlam said in a Friday note.
Brent crude fell 1.7% to $95.12 per barrel and West Texas Intermediate crude lost 1.7% to $89.21 per barrel early Monday. Iran nuclear talks have not collapsed yet, making it another potential negative for crude prices if Iranian supplies reenter the market, Erlam noted.
Oil prices could be stabilizing at these levels, with Brent above the $92 mark and WTI choppy around $90, according to Erlam. However, volatility may return considering how the rest of the year has gone and a conclusion of the nuclear talks is likely to have an impact one way or another, the analyst added. # Brent Falls to $95 amidst Iran Nuclear Talk
