Oil Prices Are Falling on Global Markets: Key Factors
5 August 14:38
Oil prices continued to fall on Wednesday amid hopes for progress in peace talks between the U.S. and Iran. This was reported by "Komersant Ukrainian", citing “Interfax-Ukraine.”
October Brent crude futures on the London-based ICE Futures exchange are trading at $79.01 per barrel, down $0.35 (0.44%) from the previous session’s close. On Tuesday, they fell by $4.41 (5.3%) to $79.36 per barrel.
WTI crude oil futures for September delivery on the New York Mercantile Exchange (NYMEX) electronic trading platform have fallen by $0.49 (0.65%) to $75.28 per barrel as of this hour. At the close of the previous session, their price had fallen by $4.57 (5.7%) to $75.77 per barrel.
Watch us on YouTube: important topics – without censorship
The day before, both oil grades fell to a three-week low following a statement by U.S. Treasury Secretary Scott Bessent that Washington and Tehran could reach a successful outcome in negotiations to resume shipping through the Strait of Hormuz in the near future.
U.S. Secretary of State Marco Rubio later stated that no final agreements regarding shipping through the Strait of Hormuz have been reached yet, but expressed hope that a compromise would be reached soon.
U.S. President Donald Trump discussed efforts to de-escalate the conflict between Washington and Tehran during a phone call with the Emir of Qatar, Tamim bin Hamad Al Thani. The Emir emphasized the need to continue dialogue between the parties to the conflict and called for adherence to the memorandum of understanding that the U.S. and Iran issued in June.
“The premium driven by the previous geopolitical risk has disappeared, but the overall situation regarding the growth outlook is cause for concern,” noted Priyanka Sachdeva of Phillip Nova. “If diplomatic efforts fail and supplies are disrupted, the decline in prices will prove short-lived.”
Meanwhile, the American Petroleum Institute (API) reported that U.S. crude oil inventories rose by 2.69 million barrels last week. Analysts surveyed by Trading Economics had expected a decline of 2 million barrels.
The API receives data from refinery, petroleum product, and pipeline operators on a voluntary basis. Official inventory data from the U.S. Department of Energy will be released on Wednesday at 5:30 p.m. Kyiv time.
Read us on Telegram: important topics – without censorship
