Oil prices have fallen on global markets: what are the reasons?
23 February 10:31
Global oil prices fell by about 1%. The reasons for the decline were expectations of a new round of nuclear talks between the US and Iran, which reduced tensions in the Middle East, as well as Donald Trump’s unexpected decision to raise import tariffs again.
This was reported by "Komersant Ukrainian" with reference to Reuters.
On Monday morning, Brent crude oil futures fell 76 cents, or 1.06%, to $71 per barrel, while West Texas Intermediate crude oil futures fell 75 cents, or 1.10%, to $65.75 per barrel.
The main reason for this was President Trump’s announcement of a temporary tariff increase on imports from all countries from 10% to 15%. This decision was announced after the US Supreme Court blocked the president’s previous tariff program.
Market analysts note that such steps reinforce fears of a slowdown in global economic growth and, as a result, a decline in demand for fuel.
Against the backdrop of these events, China has already begun a full assessment of the situation and called on Washington to abandon unilateral restrictions.
Easing tensions in the Middle East
The decline in prices is also fueled by news of the upcoming third round of talks on Iran’s nuclear program, which is scheduled to take place on Thursday in Geneva.
Oman, which is mediating the process, has confirmed the parties’ readiness for dialogue. Moreover, senior officials in Tehran are talking about the possibility of concessions in exchange for the lifting of sanctions.
This has significantly weakened the risk premium, which last week pushed prices up by more than 5% due to the threat of direct military conflict.
Forecasts and future risks
According to Goldman Sachs estimates, the global oil market may face a surplus of raw materials in 2026, provided there are no major disruptions in supply.
The bank has raised its short-term forecasts due to declining inventories in developed countries, but warns of long-term risks. A potential easing of sanctions against Iran and Russia could unlock significant supply in the market, which could cause prices to fall in the future.
Investors are currently keeping a close eye on diplomatic efforts in Geneva, which could radically change the global energy security landscape.
