Oil Prices Are Rising on Global Markets: What’s Behind the Trend
7 July 14:41
Oil prices are rising on Tuesday morning, July 7, following a slight decline the previous day; the focus of the market is on trade in the Middle East. This is reported by "Komersant Ukrainian", citing “Interfax-Ukraine.”
As of 8:13 a.m. local time, September Brent futures on the London-based ICE Futures exchange are trading at $72.56 per barrel, up $0.57 (0.79%) from the previous session’s close. On Monday, they fell by $0.13 (0.2%) to $71.99 per barrel.
WTI crude oil futures for August delivery on the New York Mercantile Exchange (NYMEX) electronic trading platform have risen by $0.52 (0.76%) to $69.07 per barrel. At the close of the previous session, their price had fallen by $0.14 (0.2%) to $68.55 per barrel.
Traders are awaiting the resumption of negotiations between the U.S. and Iran and are assessing the prospects for the normalization of oil supplies from the Persian Gulf.
U.S. President Donald Trump stated on Monday that Washington would either “reach an agreement” with Tehran or “wrap things up” in Iran.
“Further progress in the negotiations could intensify downward pressure on prices,” wrote BankPro CEO Paolo Broccardo. “At the same time, any setback in the negotiations could quickly reignite an upward trend in oil prices.”
Despite a recent surge in activity in the Strait of Hormuz, the resumption of shipments is proceeding more fully than expected, ANZ analysts noted. Shipowners remain cautious, which is limiting the pace at which oil exports are returning to normal levels, according to the bank’s research note.
Efforts to restore shipments have reduced the risk premium, but the market remains wary of placing too much hope in the stability of the current truce, given the volatile nature of U.S.-Iranian relations, wrote KCM Trade analyst Tim Waterer.
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