Oil prices sink to lowest level since February after US-Iran talks
Photo: Oil prices fell to their lowest level since February following talks between the US and Iran (Getty Images)
Oil prices fell to a four-month low after the US and Iran held indirect talks in Qatar, according to Reuters.
Brent crude oil futures fell by 77 cents (1.1%) to $70.80 per barrel. The price of US West Texas Intermediate (WTI) crude oil fell by 84 cents (1.2%) to $67.74 per barrel.
Meanwhile, according to Reuters sources, OPEC+ countries may agree in August to increase oil production by approximately 188,000 barrels per day.
On Thursday, the Swiss holding company UBS lowered its forecasts for Brent crude, citing a memorandum of understanding between the US and Iran and an increase in oil shipments through the Strait of Hormuz.
UBS lowered its forecast for the average price of Brent crude for the September quarter by $25 and for the December quarter by $10. The average oil price is expected to be $80 per barrel in the second half of the year and $75 in 2027.
US-Iran talks
On July 1, the United States and Iran concluded another round of indirect negotiations in Qatar. US President Donald Trump announced progress on the issue of Tehran’s nuclear disarmament, though serious financial and territorial disputes remain between the two countries.
After the US and Iran ceased mutual attacks, oil prices fell to nearly the same level as at the start of the conflict. However, despite the drop in prices, the oil market remains cautiously watchful.
According to the US Central Command, shipping through the Strait of Hormuz remains open.
