Do markets believe Trump? Oil prices continue to fall - Reuters
Illustrative photo: oil prices continue to decline (Getty Images)
Global oil prices continue to decline as hopes for a deal between the United States and Iran outweigh concerns about supply disruptions in key markets, Reuters reports.
Brent crude futures fell by 44 cents, or 0.5%, to $94.49 per barrel. US West Texas Intermediate (WTI) crude futures declined by 70 cents, or 0.8%, to $90.59 per barrel.
"While there are hopes for de-escalation, many investors remain sceptical, given that US-Iran talks have repeatedly broken down even after appearing to make progress," said Toshitaka Tazawa, an analyst at Fujitomi Securities.
According to him, until a peace agreement is reached and free navigation through the strait is restored, WTI prices are expected to continue fluctuating between $80 and $100.
Meanwhile, the US Energy Information Administration reported on Wednesday that crude oil inventories fell by 913,000 barrels to 463.8 million barrels for the week ending April 10, compared with analysts’ expectations in a Reuters poll of a 154,000-barrel increase.
Oil crisis and global impact
The International Energy Agency (IEA) is consulting with governments in Asia and Europe about releasing additional oil reserves due to a large-scale energy crisis caused by the war in Iran. The IEA forecasts an "oil shock" that could be worse than the 1970s crisis.
However, on April 15, global oil prices edged lower amid hopes that Iran would resume talks with the US and Israel to end the conflict that has closed the Strait of Hormuz.
In Europe, alarm is also growing. For example, a potential shortage of jet fuel due to the war in Iran is a "major concern" for the European Commission and is prompting airlines to increase pressure on EU climate policy.
