Global oil prices on international exchanges have slightly decreased as traders continue to monitor the uncertainty surrounding ongoing negotiations between Washington and Tehran. This is reported by Reuters.
On the London ICE exchange, the price of Brent crude oil fell by 75 cents to $94.23 per barrel. At the same time, futures for American WTI crude oil on the New York NYMEX exchange dropped by 85 cents, trading at $91.31 per barrel.
Market Dynamics and May Decline
The current price drop follows a sharp rise the previous day, when both benchmarks significantly increased in price. However, the short-term rise on Monday did not change the overall trend: in May, oil prices fell by more than 16%.
📍 Factors Affecting Prices.
Regional Ceasefire. The current ceasefire has reduced geopolitical risks associated with supply disruptions:
Expectations of Increased Supply. Market participants predict that a possible broad agreement between the US and Iran will lead to the easing of the embargo on Iranian oil exports:
Global Balance. The return of Iranian crude to the market could significantly increase global supply, balancing demand:
Analysts estimate that the prolongation of negotiations or the publication of any clear results in the near future will continue to be the main drivers of pricing on oil exchanges.
