Oil Prices Decrease on US-Iran Nuclear Deal Optimism
Oil prices decreased on Thursday amid an unexpected increase in US crude oil inventories, the world’s largest oil consumer, and nuclear negotiations between the US and Iran. Reports showed that the US favour an oil price between the range of $40 and $40-$50 and lower interest rates.
Energy costs remained elevated since several sanctions on Russia tightened supply in the global commodity market, with additional pressures from unrest in the Middle East. But a slowdown in China’s economic performance has also impacted demand.
International benchmark Brent crude decreased by around 2.4%, trading at $63.93 per barrel, down from $65.49 at the previous session’s close. The US benchmark West Texas Intermediate decreased by about 2.7%, settling at $60.80 per barrel, compared to its prior session close of $62.43.
The US Energy Information Administration (EIA) reported that the country’s commercial crude oil inventories rose by 3.5 million barrels last week, reaching 441.8 million barrels. Market expectations had been for a decrease of around 2 million barrels. This increase, signaling a decline in demand in the US, has heightened concerns in the markets over a possible oversupply.
Meanwhile, nuclear negotiations between the US and Iran are ongoing, and developments related to the talks are also influencing price movements.
During his Middle East tour, US President Donald Trump, who visited Qatar, expressed hope that Qatari Emir Sheikh Tamim bin Hamad Al Thani could help facilitate an agreement in the ongoing nuclear negotiations with Iran.
Trump reiterated his desire for a peaceful resolution to Iran’s nuclear programs and stated that the decision now lies with Tehran.
In a related development, the US State Department announced that it had added several individuals and companies based in China and Hong Kong to its sanctions list, citing their support for Iran’s ballistic missile program.
US President Donald Trump said Thursday a deal was close on Iran’s nuclear programme that would avoid military action, sending oil prices tumbling as he boasted of raising “trillions of dollars” on a Gulf tour.
“We’re not going to be making any nuclear dust in Iran,” Trump said in Qatar, the second stop of his multi-day Gulf tour.
“I think we’re getting close to maybe doing a deal without having to do this,” he said, in reference to military action. Oil prices plunged more than three percent on rising hopes for a nuclear deal.
Iran has held four rounds of talks with the Trump administration, which has sought to avoid a threatened military strike by Israel on Tehran’s contested nuclear programme. #Oil Prices Decrease on US-Iran Nuclear Deal Optimism Nigeria US Dollar Bonds Rally, Yield Falls Below 10%
