Oil prices are falling on global markets: key factors
20 May 12:35
Oil prices are falling on Wednesday, May 20, as traders assess the latest statements from U.S. officials regarding the conflict with Iran. This is reported by "Komersant Ukrainian", citing Interfax-Ukraine.
U.S. President Donald Trump stated during an event for members of Congress at the White House that a war with Iran would end “very quickly” and that Tehran “really wants to make a deal,” according to Bloomberg.
Shortly before that, the U.S. president said that the United States might have to attack Iran again. On Monday, he said he had ordered the attack on Iran to be postponed for “two or three days” following a request from the leaders of Qatar, Saudi Arabia, and the UAE.
U.S. Vice President J.D. Vance noted progress in Washington’s negotiations with Tehran during a White House briefing on Tuesday, adding that neither side wants a resumption of hostilities.
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The price of July Brent crude futures on the London ICE Futures exchange, as of 8:20 a.m. local time, stands at $110.75 per barrel, down $0.53 (0.48%) from the previous session’s close. On Tuesday, these contracts fell by $0.82 (0.73%) to $111.28 per barrel.
July WTI crude oil futures on the New York Mercantile Exchange (NYMEX) have fallen by $0.47 (0.45%) to $103.68 per barrel so far today. At the close of the previous session, their price had fallen by $0.23 (0.22%) to $104.15 per barrel.
“Investors are closely watching whether Washington and Tehran can truly find common ground and reach a peace agreement, especially given that the U.S. position is changing almost daily,” notes Fujitomi Securities analyst Toshitaka Tazawa.
“Oil prices are likely to remain high given the continued possibility of new U.S. attacks on Iran, as well as expectations that even if a peace agreement is reached, oil supplies from the region will not be able to quickly return to pre-war levels,” the expert says.
On Wednesday, the market is awaiting the release of the U.S. Department of Energy’s weekly report on oil and petroleum product inventories in the country. Estimates from the American Petroleum Institute (API), released Tuesday evening, showed a decline in U.S. oil inventories last week of 9.1 million barrels.
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