The fall in oil prices: what is happening on global exchanges
17 February 09:26
Brent crude oil prices fell slightly as investors assessed the risks of supply disruptions after Iran conducted naval exercises near the Strait of Hormuz ahead of nuclear talks with the US scheduled for later in the day.
This was reported by Reuters , according to "Komersant Ukrainian".
Brent futures fell 0.47% (32 cents) to $68.33 per barrel, after rising 1.33% on Monday.
US WTI was $63.51 per barrel, up 62 cents (0.99%), but this movement included all of Monday’s dynamics, as the contract had no settlement price on Monday due to Presidents Day in the US.
Many markets are closed on Tuesday for the Lunar New Year holiday, including mainland China, Hong Kong, Taiwan, South Korea, and Singapore.
US President Donald Trump said on Monday that he would be involved in the Geneva talks “indirectly” and added that, in his opinion, Tehran wants to reach an agreement. Over the weekend, Trump said that regime change in Iran “would be the best thing that could happen.”
“Market sentiment is closely linked to the tone and progress of these talks, which supports the geopolitical risk premium in prices,” said Sugandha Sachdeva, founder of SS WealthStreet, a research company in New Delhi.
She said oil prices are likely to remain volatile, with sharp movements in both directions driven by diplomatic signals rather than just the fundamental balance of supply and demand.
Iran began military exercises on Monday in the Strait of Hormuz, a key international waterway and export route for oil from the Arab states of the Persian Gulf, which are calling for a diplomatic resolution to the dispute.
Iran, along with its OPEC partners Saudi Arabia, the UAE, Kuwait, and Iraq, exports most of its oil through the strait, mainly to Asia.
