Oil Prices Are Falling on Global Markets: Key Factors
4 May 10:14
Oil prices are edging lower on Monday morning, May 4, following a decline at the close of trading on Friday. This is reported by "Komersant Ukrainian", citing Interfax-Ukraine.
“July Brent futures on the London ICE Futures exchange, as of 8:11 a.m., are trading at $108.05 per barrel, down $0.12 (0.11%) from the previous session’s close. On Friday, they fell by $2.23 (2.02%) to $108.17 per barrel,” the report states.
WTI contracts for June on the New York Mercantile Exchange (NYMEX) have fallen in price by $0.49 (0.48%) to $101.45 per barrel. At the close of the previous session, their price had fallen by $3.13 (2.98%) to $101.94 per barrel.
Market participants continue to monitor developments in the Middle East.
U.S. President Donald Trump stated last weekend that starting Monday, the U.S. will provide assistance to ships blocked in the Strait of Hormuz that are seeking to leave.
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The U.S. will assist ships from countries not involved in the conflict between Washington and Tehran, Trump wrote on the social media platform Truth Social. He emphasized that these ships will not return to the Strait of Hormuz until the Iranian crisis is resolved.
The White House chief also spoke positively about U.S.-Iranian negotiations to resolve the conflict.
“I am aware that my representatives are holding very positive discussions with Iran. These discussions could lead to something very positive for all parties,” he noted.
The U.S. side has conveyed its response to Tehran regarding Iran’s proposals for resolving the conflict in the region, Iranian Foreign Ministry spokesman Esmail Baghami said on Sunday.
“Iran has received the U.S. response to our plan,” the IRNA news agency quoted him as saying.
Earlier, Trump told Israeli media that he had rejected Iran’s proposal to resolve the crisis, calling it unacceptable.
Meanwhile, seven OPEC+ countries have decided to increase oil production quotas in June by 188,000 barrels per day. Thus, OPEC’s+ total quota for June will amount to 34.744 million bpd. This is 185,000 bpd more than the alliance’s total permitted production level in April.
The United Arab Emirates (UAE), which produces about 3–3.5 million barrels of oil per day, announced its withdrawal from OPEC and the OPEC+ agreement effective May 1. The decision has not yet been formalized in accordance with OPEC procedures.
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